French cosmetics trade responds to US import tariffs

France has lengthy been the world’s largest exporter of cosmetics and private care merchandise, and in 2024 a lot of the exports (40%) went to different European international locations, accruing round €10bn, in keeping with the French cosmetics commerce affiliation FEBEA (La Fédération des Entreprises de la Beauté.)

“Our know-how, which can’t be relocated, stays a serious asset,” stated a spokesperson for FEBEA.

“Defending Made in France’s place on this planet requires a concerted, proactive and bold technique.”

“A commerce warfare solely has losers”

The commerce affiliation stated it was dissatisfied that the US administration has determined to introduce an extra 20% customs obligation on imports of products from the European Union.

“This measure will essentially have an effect on the French cosmetics trade,” it stated, and highlighted that the US accounts for 13% of the sector’s exports and “is thus a serious buying and selling associate for French magnificence corporations.”

“Till now, transatlantic relations on this sector have been primarily based on a balanced framework, with no reciprocal customs duties. They’re a part of a protracted custom of business cooperation, cross-investment and industrial amenities on either side of the Atlantic,” continued the spokesperson. “On this respect, the USA will stay an necessary marketplace for French cosmetics.”

“The commerce warfare has solely losers: it penalises American customers, confronted with lowered provide or larger costs, whereas weakening European corporations by means of lowered competitiveness or decrease margins,” continued FEBEA.

The commerce affiliation famous that we “are in all probability firstly of a business escalation” however that “it’s important to not reply with a logic of one-upmanship, however to construct a united, calm and proportionate European response,” including {that a} “community-wide response” i wanted from the EU.

“Dangers accentuating aggressive stress on different world markets”

FEBEA additionally famous that different cosmetics exporting international locations corresponding to South Korea, Japan and China are all affected and “this reconfiguration dangers accentuating aggressive stress on different world markets.”

The commerce warfare is at the beginning an financial warfare: the competitiveness of the European cosmetics trade – and of the French cosmetics trade particularly – is at stake. Our response have to be “industrial in addition to diplomatic, and performed on the dimensions of the European continent.”