The effect of Trump tariffs is now being realized in the perfume business, as UAE and Saudi Arabian perfume brands are seeing serious threats as shipments to the US become delayed and are held up in customs. Famous for their exotic Arabic fragrances and upscale “Dubai fragrance” lines, the brands have increasingly been popular with US consumers, particularly those searching for distinctive, high-end scents. Tariffs added expense of entry and logistical woes, but they have caused many companies to rethink exporting to one of their most lucrative markets.
The US has been a long-time destination for Arabic perfume brands, especially those with high-end, exotic fragrances that are not readily available in American mainstream stores. With fragrances usually combining oud, rose, and musk, these high-end products appeal to a niche but dedicated clientele. The tariffs have, however, driven up prices, and it has become challenging for both established players and new entrants to sustain their market share.
This has resulted in a backlog of deliveries, with containers of luxury perfumes lying idle in the US ports. Retailers are frustrated as well as consumers who are willing to purchase their desired perfumes. Numerous perfume companies are now considering using alternative routes or deciding to reduce their prices to minimize the impact of the tariffs.
While these brands struggle to navigate the changing trade landscape, the long-term effect on the perfume business is uncertain. Yet one thing is certain: Arabic and Dubai-style fragrances have not lost their global popularity, and US consumers’ demand remains on the increase, in spite of the added financial obstacles.