Beauty industry warns EU against cosmetics trade tariffs

L’Oréal and a coalition of leading beauty companies have urged the European Union to exclude cosmetics from potential retaliatory tariffs on US exports, warning that such measures could harm European businesses more than their American counterparts, according ot the Financial times.

The EU is considering tariffs on over 1,700 US goods in response to former President Donald Trump’s 25 percent duty on European steel and aluminium. Cosmetics—including perfumes, skincare, and haircare products—are among the sectors at risk.

L’Oréal CEO Nicolas Hieronimus cautioned against targeting the beauty sector, arguing that Europe is the world’s largest exporter of cosmetics and would suffer greater losses than the US. “If a sector is to be drawn into a tariff dispute, it should be one where Europe is a net importer rather than a net exporter,” he told the Financial Times.

The EU’s review covers 26bn euros in US goods, including whiskey and motorcycles, with new tariffs delayed until April following US threats of a 200 percent duty on European alcohol, according to the European Trade Commission Report.

Executives from The Value of Beauty alliance—including Beiersdorf, Puig, and Givaudan—met with EU officials to highlight the industry’s 180bn dollars contribution to GDP and 3.2 million jobs in Europe, the Financial Times noted. Beiersdorf CEO Vincent Warnery warned that tariffs would force price increases, harming both North American consumers and European market share.

While L’Oréal produces most of its US-sold products domestically, mitigating some risk, the broader European beauty sector remains vulnerable.