Leading European cosmetics companies, including L’Oréal, are calling on the European Union to remove American beauty products from its proposed list of trade retaliation targets. The appeal comes as the EU considers imposing retaliatory tariffs on US goods in response to the steel and aluminum tariffs enacted by the Trump administration.
Details of the Appeal
The European Commission has drafted a list of potential tariffs on US products as part of a broader response to the US’s imposition of tariffs on European steel and aluminum. Among the goods on this proposed list are cosmetics, including perfumes and makeup.
In response, L’Oréal CEO Nicolas Hieronimus, alongside 15 other leaders in the beauty industry, met with EU officials to stress the risks of escalating trade tensions. The beauty sector, they argue, is uniquely vulnerable to retaliatory measures, as European companies are net exporters to the US.
Germany’s Beiersdorf, along with other members of the Value of Beauty alliance, has also urged EU policymakers to avoid targeting cosmetics. The group warned that such tariffs could lead to price increases in the US, potentially undermining demand and shrinking market share for European brands.
According to industry data, the European beauty sector employed nearly 2 million people in 2023 and contributed approximately €180 billion to the EU economy.
The Stakes for European Cosmetics
The cosmetic industry is a key export sector for Europe, and any escalation of trade tensions could have significant economic consequences. Industry leaders are concerned that higher tariffs could provoke retaliatory actions from the US, potentially disrupting global supply chains and damaging profit margins, job security, and consumer prices. As such, major European beauty brands are urging the EU to reconsider cosmetic products as a target for retaliatory tariffs.
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