L'Oréal CEO says EU-US customs deal brings 'no good news' for cosmetics sector
'We're going from 0% to 15%, so we're not happy,' he said during the company's half-year results presentation. 'It's not good news for a cosmetics industry that is a European flagship.'
'In the end, Europe, with almost 500 million consumers, is going to pay higher customs duties than the UK,' Hieronimus lamented.
The executive emphasized the importance of the cosmetics sector to the European economy, pointing out that it represents more than 3 million jobs across Europe, contributes €180 billion to European GDP, and is France's second-largest contributor to the balance of trade.
'I remain disappointed by this agreement,' Hieronimus said. 'The positive aspect is that it brings visibility and removes uncertainty. We can now plan ahead.'
Speaking on behalf of the Value of Beauty Alliance—a coalition of major European players in the beauty and skincare industry including L'Oréal, Givaudan, IFF, Puig, and Cosmetic Valley—Hieronimus said the group will appeal to European leaders and trade negotiators to ensure stronger protections for the sector.
He added that the group will also continue pushing for regulatory simplification. 'We can move faster so that we don't have customs duties on one side and regulations on the other,' he said.
While Hieronimus acknowledged the new tariffs are 'manageable' for L'Oréal, he noted: 'At least this year, they won't have a major impact on our ability to deliver results.'
The United States was L'Oréal's leading growth driver in the first half of 2025. The company generates 27% of its global sales in North America and manufactures half of what it sells in the US through its four local factories.
To mitigate the impact of the tariffs, L'Oréal has stockpiled luxury products and fragrances and may implement slight price increases on some items.
In June, the group also announced a deal to acquire US-based haircare brand Color Wow.
Paris, July 29, 2025 (AFP)
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