French lipstick brands on red alert after Trump tariff threats

PARIS: U.S. threats of a 30 percent tariff on imports from the European Union have left France's beauty industry reeling, with doubts over how much of a premium American consumers will be prepared to pay for the "French touch".

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US buys 12% of French beauty exports, mainly perfume, but faces a 30% tariff if no EU deal is reached by August 1.
French brands fear major losses and job cuts, with some exploring US partnerships to reduce the tariff impact.
Industry eyes new markets like Brazil and India if US exports become too costly.

The FEBEA union, which represents the French beauty industry, said exports to the United States were worth nearly 3 billion euros in 2024, representing about 12 percent of all exports. Perfume accounted for a little over half of them, with one perfume in five sold abroad bought by an American consumer, the FEBEA said.

Crucially, the U.S. export market was growing, momentum undermined by U.S. President Donald Trump's 30 percent tariff threat if a deal with the EU is not reached by August 1.

Anne-Marie Gabelica is the founder of cosmetic brand Oolution and a member of "La French Beauty", a collective of independent French cosmetic brands which runs a boutique in the heart of Paris.

"For French cosmetics brands, exports are an essential outlet. It's not always easy to imagine but some French brands are basically only sold outside France," she said.

If the tariffs come into effect, French brands will have to look to other markets, Gabelica said. The FEBEA sees potential for growth in Brazil and India.

"Le Rouge Francais" specialises in plant-based beauty products and charges a premium for the more complex production process and its luxury profile.

Many of the lipsticks which roll off its production line west of Paris in France's "Cosmetic Valley" are destined for export, 25 percent of them to the United States.

Co-founder Salem Ghezaili said that they were looking into channelling imports through a U.S. company to lessen the impact of tariffs, but that much remained uncertain.

For the FEBEA, the impact on the French economy of 30 percent tariffs would be dramatic. A study by economic consultants Asterès said it could lead to the loss of thousands of jobs, FEBEA head Emmanuel Guichard said.