The French beauty industry is facing significant challenges due to upcoming U.S. tariffs, as highlighted by a study from the French beauty association, FEBEA. French cosmetics and fragrances, which rank as the country’s second-largest export after aircraft, have found a crucial market in the United States. In 2024, French exports to the U.S. were valued at nearly 3 billion euros, with fragrances alone accounting for about half. The repercussions of new tariff regulations could drastically alter this landscape.
According to FEBEA’s findings, the present zero tariff rate on cosmetics exports to the U.S. will be replaced by a 15% duty on cosmetics starting July 28, 2025, and an additional 50% on metal packaging components from August 19, 2025. Furthermore, a depreciating dollar against the euro is expected to compound these effects. By 2026, this combination could lead to a 21% decline in French cosmetics exports to the U.S., equating to a projected loss of 620 million euros. The potential impact is profound, signaling not just decreased trade but also severe job losses in an industry that safeguards thousands of livelihoods.
Job losses are estimated at around 10,900 positions, including 2,700 direct roles within exporting cosmetics companies and an additional 8,200 indirect jobs throughout the supply chain, such as packaging and logistics. The ongoing situation poses a direct threat to employment in a sector where every job typically supports three indirect roles. Given these statistics, FEBEA expresses significant concern for the multiplier effect that such job losses could entail on the broader economy.
The current export dynamics highlight France’s strong position, enjoying a trade surplus of 2.4 billion euros in relation to the U.S. Yet, this advantage is rapidly being jeopardized by the impending tariffs. Early signs of impact are already visible, with a reported 12.7% drop in exports in the first half of 2025. This decline is attributed to stockpiling by large companies as they brace for the forthcoming tariffs, painting a picture of turmoil for an industry that bolsters the French economy.
In the context of these challenges, FEBEA reminds us that the French cosmetics sector is a cornerstone of the nation’s economy, contributing around 35.6 billion euros in sales and sustaining 300,000 direct and indirect jobs. This industry is not merely a source of income; it serves as a cultural emblem and a tool for projecting France’s international influence. However, this recent tariff imposition adds to existing pressures, including increasing regulation in Europe and competition from Asian markets, jeopardizing this vital sector.
In response to the looming crisis, FEBEA has initiated the “Beauty Industry Package,” a proactive European action plan designed to enhance competitiveness and safeguard the industry’s future. Emmanuel Guichard, the general delegate of FEBEA, emphasizes the urgency of the situation, calling on European and French decision-makers to support this initiative. His plea reflects a desire not only to protect existing jobs but also to solidify France’s leadership in the global cosmetics market amidst mounting challenges and complexities.