L'Oréal urges EU to exclude US cosmetics from tariffs

L’Oréal and other European beauty companies have urged the European Union (EU) not to include U.S. cosmetics in its list of products for possible trade retaliation. They argue that doing so could harm their sector significantly. Nicolas Hieronimus, L’Oréal’s CEO, spoke with EU officials this week. He warned that adding cosmetics to the retaliation list could lead to damaging consequences for European businesses. He emphasized that beauty products are a net importer for Europe, meaning they buy more from the U.S. than they sell there. The EU recently announced measures in response to U.S. tariffs on steel and aluminum. This includes a list of U.S. goods that could face tariffs, such as perfumes and skincare products. The total value of these goods is around €26 billion. The EU has delayed the implementation of these tariffs to April 13 to allow for more discussions with the U.S. This decision followed concerns from France and its alcohol industry about severe tariffs that could affect EU exports. During their discussions in Brussels, beauty industry leaders like Vincent Warnery of Beiersdorf also cautioned against retaliatory actions. He compared including cosmetics in the trade war to “shooting ourselves in the foot,” as it could lead to higher prices for consumers in both Europe and the U.S. The European beauty sector is significant. It employs nearly 2 million people and contributes approximately €180 billion to the EU economy. L’Oréal, along with others, is also addressing regulatory concerns related to environmental laws that they feel impact innovation. Hieronimus mentioned that a substantial part of research budgets goes towards adjusting products to meet these regulations. He believes some regulatory measures are necessary but finds certain rules inefficient and burdensome.