European Beauty Groups Urge EU to Remove US Cosmetics from Trade Retaliation List

THE WHAT? Major European cosmetics players, including L’Oréal, are lobbying the EU to remove American beauty products from its proposed trade retaliation list. They argue this measure could trigger damaging countermeasures from the US against one of Europe’s key export sectors.

THE DETAILS 

• The European Commission recently drew up a list of possible retaliatory tariffs on US goods in response to steel and aluminium tariffs imposed by the Trump administration. Cosmetics, including perfumes and make-up, appear on the proposed list.
• L’Oréal’s CEO, Nicolas Hieronimus, along with 15 other beauty industry leaders, met with EU officials to highlight the risk of mutual tariffs. They contend that European beauty companies are net exporters to the US, making them particularly vulnerable to retaliatory measures.
• Germany’s Beiersdorf and others in the Value of Beauty alliance are urging Brussels to avoid punitive tariffs on cosmetics, warning that any price increases in the US could hurt demand and market share.
• European beauty brands employ close to 2 million people across the EU and contributed roughly €180bn to the region’s economic output in 2023, according to industry data.

THE WHY? The cosmetic sector is a significant European export market, and any tit-for-tat trade escalation threatens profit margins, job security, and consumer costs. Fearing that higher tariffs may prompt US retaliation and disrupt complex global supply chains, Europe’s major personal care brands want to steer the EU’s trade countermeasures away from cosmetics.

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