L’Oréal and Beauty Industry Leaders Urge EU to Avoid Cosmetics Tariffs

In a bid to prevent cosmetics from being subjected to retaliatory trade tariffs between the European Union (EU) and the United States, L’Oréal and other beauty industry leaders are urging the EU to exempt beauty products from the list. This call comes as the EU contemplates countermeasures following the US administration’s imposition of tariffs on steel and aluminum imports.

The CEO of L’Oréal, Nicolas Hieronimus, emphasized the potential negative impact of including cosmetics in the tariff war. He stressed the importance of considering the trade balance and avoiding penalties on sectors where the EU stands to lose more than gain. Hieronimus, along with top executives from major beauty companies like Beiersdorf, Puig, and Givaudan, advocated for a strategic approach that safeguards the interests of the beauty and personal care industry.

The Value of Beauty alliance, representing companies that collectively contribute €180 billion to the EU’s GDP and support 3.2 million jobs, highlighted the significant economic role of the beauty sector. These companies, which export €26 billion worth of goods, are urging the EU to engage in regular dialogue with the industry to ensure policies align with the sector’s interests.

The threat of a potential tit-for-tat escalation in tariffs on beauty products raises concerns about the repercussions on both European businesses and consumers. Vincent Warnery, the CEO of Beiersdorf, warned that including beauty and cosmetics in tariffs could lead to price hikes, adversely affecting consumers in the US and Canada while impacting the market share of companies like Nivea and Coppertone.

While L’Oréal aims to mitigate the impact of tariffs by producing a significant portion of its US-bound goods within the country, uncertainties loom over the industry’s resilience in the face of escalating trade tensions. Hieronimus suggested that, despite challenges, the industry could navigate through the tariffs if they do not escalate into a global trade conflict.

As the EU deliberates on its response to US tariffs, the plea from beauty industry leaders underscores the importance of safeguarding a sector that plays a vital role in the European economy. The push for exemptions for beauty products from punitive tariffs reflects a broader effort to protect jobs, businesses, and consumers within the beauty and personal care industry.