French Beauty Industry Faces €620 Million Hit From Trump Tariffs

The French beauty and cosmetics sector faces a significant financial challenge, with new customs barriers introduced by Donald Trump since January projected to cost the industry €620 million by 2026. The Fédération des Entreprises de la Beauté (FEBEA) forecasts a substantial 21% decline in exports to the United States as a direct consequence of these measures.

Working in conjunction with the consulting firm Astérès, FEBEA has quantified the potential ramifications of this trade shock. The federation estimates a loss of 2,700 direct jobs within exporting cosmetics companies, alongside an additional 8,200 indirect jobs across supporting sectors such as packaging, transport, and communications. While French cosmetics companies were exempt from duties in 2024, they now confront a 15% tariff, compounded by an extra 50% levy specifically targeting the metal components of their packaging. The economic impact of these tariffs is further exacerbated by the depreciation of the dollar.

In response to this impending crisis, FEBEA's general delegate, Emmanuel Guichard, emphasized the industry's proactive stance, stating, "Faced with this shock, we cannot remain mere bystanders." This summer, FEBEA launched the "Beauty Industry Package," a comprehensive European emergency action plan designed to safeguard the competitiveness and future viability of the sector. The federation is actively calling upon European and French policymakers to provide the necessary support to maintain France's global leadership in cosmetics, while critically urging them to avoid introducing unnecessary complications to the existing regulatory framework.

The French cosmetics sector is a formidable economic engine, having posted the second-largest trade surplus with the United States in 2024, valued at €2.4 billion. Comprising 350 companies, the industry collectively generates a turnover of €35.6 billion and supports a remarkable 300,000 jobs. In 2024 alone, these companies exported €2.9 billion worth of products to the United States, underscoring the vital role the industry plays as a driver of innovation, exports, and employment within the French economy.