EU Tariffs Threaten Transatlantic Cosmetics Trade, Industry Groups Warn

THE WHAT? The European Commission is set to reinstate and expand tariffs on an estimated €26 billion worth of U.S. goods in response to American levies on steel and aluminium. This move directly targets cosmetics, personal care products, and spirits imported from the United States, prompting outcry from European industry groups who fear retaliatory measures on their own exports.

THE DETAILS 

• Tariffs Reinstated: Brussels will re-impose tariffs on goods including bourbon whiskey, while adding new tariffs on other spirits, makeup, and essential oils. France, Spain, and Italy had requested that wine and spirits be removed from the target list, but those appeals did not result in a last-minute exemption.
• Industry Concerns: Trade associations such as spiritsEurope and French cosmetics group FEBEA argue that higher tariffs endanger a thriving export market to the U.S., potentially triggering further retaliation. The European cosmetics industry already exports significantly more to the U.S. than it imports, raising the stakes for companies like L’Oréal and Estée Lauder.
• Economic Impact: U.S. whiskey exports to Europe were worth $699 million in 2024, while European spirits exports to America totaled €2.9 billion the same year. A previous round of tariffs in 2018 lowered American whiskey exports by 20%, and brand representatives worry renewed duties could inflict similar damage in both directions.

THE WHY? Amid an escalating global trade dispute, the beauty and personal care sectors have been caught in the crossfire. By targeting iconic U.S. products like bourbon, makeup, and essential oils—while risking reciprocal action—the EU introduces fresh uncertainty for multinational manufacturers and suppliers already navigating narrow profit margins and complex international regulations.

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