The announcement of 15% US tariffs “is not good news” for the cosmetics sector, a key European industry, L’Oréal CEO Nicolas Hieronimus told AFP on Wednesday, July 30, but added the impact would remain “manageable” for the company.
“”We’re going from 0% to 15%, so of course we’re not pleased,” Hieronimus said during the group’s half-year results presentation. “In the end, Europe — with nearly 500 million consumers — will pay higher customs duties than the United Kingdom,” he noted.
He also highlighted that the cosmetics industry supports over 3 million jobs across Europe, contributes EUR 180 billion to the continent’s GDP, and is France’s second-largest contributor to the national trade balance.
“I remain disappointed by this agreement,” he said, even though “the positive aspect is that it provides visibility and therefore removes uncertainty. We can now plan ahead.”
Hieronimus also said the Value of Beauty Alliance – a coalition of major European beauty players, which includes Beiersdorf, L’Oréal, Givaudan, IFF, Puig, Ancorotti Cosmetics – will appeal to European leaders to better protect the European cosmetics and personal care industry.
More specifically, he aims to focus on simplifying regulations and avoiding a situation where the industry faces “customs duties on one side and regulations on the other.”
The CEO acknowledged that for L’Oréal, the 15% U.S. tariffs are “manageable.”
“At least for this year, they will not have a significant impact on our ability to meet our performance targets,” he said.
The United States was the “leading contributor” to the group’s growth in the first half of the year, Nicolas Hieronimus said.
L’Oréal, which derives 27% of its revenue from North America, produces half of the products it sells in the region at its four U.S.-based factories. The company has also “stockpiled luxury products” and perfumes, and may implement slight price increases to help offset the impact of the tariffs.
