Recently, a coalition of major beauty companies, led by industry giant L’Oréal, is urging the European Union to exempt American cosmetic goods from its impending round of tariffs set to take effect next month. The companies warn that such measures could disproportionately harm European businesses rather than their U.S. counterparts.
L’Oréal, the Paris-based beauty powerhouse behind brands like Lancôme, Maybelline, and CeraVe, has a significant presence in North America, which generated €11.8 billion in sales last year. However, the imposition of tariffs on beauty products could disrupt trade, particularly since the European beauty sector relies heavily on exports. In France alone, beauty imports from the U.S. amount to $500 million, while exports to the U.S. stand at approximately €2.5 billion, according to industry figures cited by Reuters.
“If there is this tit-for-tat thing on beauty, it’s going to penalize Europe much more than American businesses and companies,” L’Oréal CEO Nicolas Hieronimus told the Financial Times. He recently met with EU officials in Brussels, urging them to consider the trade balance before targeting the cosmetics industry with tariffs.
Hieronimus was joined by 15 other beauty executives who echoed concerns that the EU’s retaliatory measures could significantly disrupt their operations. “My only ask to the people I’ve met [in Brussels] is to say: look at the balance of trade and don’t put a red flag on a category where we have more to lose than to win,” he emphasized.
The EU’s tariff response follows former U.S. President Donald Trump’s decision to impose a 25% tariff on steel and aluminum imports. In retaliation, the EU released a 99-page list of proposed tariffs on American goods earlier this month, which includes a wide range of beauty and personal care products, such as shampoos, perfumes, aftershaves, and sunscreens.
The European beauty industry is a major economic force, contributing €180 billion to the bloc’s GDP and employing two million people, according to Oxford Economics. Germany and France, home to Beiersdorf and L’Oréal, respectively, are the region’s largest cosmetics markets. For Beiersdorf, the German company behind brands like Nivea and La Prairie, the majority of its American sales come from products manufactured outside the U.S., primarily in Mexico. The company is preparing for the impact of tariffs by increasing inventories and adjusting pricing strategies.
Beiersdorf CEO Vincent Warnery underscored the risks of the EU’s stance, warning that failing to exclude American cosmetics would be akin to “shooting ourselves in the foot.” He added, “We’ll raise prices in the U.S., if needed, which will hurt consumers in the US and Canada and will also hurt our market share… So leave us out of it, enjoy what we bring to the economy, and don’t start a fire where there is no need.”
While the tariffs are scheduled to take effect on April 13, the EU is still gathering feedback from affected businesses. Industry leaders hope that their plea will prompt officials to reconsider before the measures are finalized.
