**Brussels**: Cosmetic companies across Europe, led by L’Oreal’s CEO, express concerns over potential impacts from the EU-US trade tensions. Industry leaders stress the importance of not involving their sector in geopolitical conflicts to protect operations and profitability.
Cosmetic brands across Europe have voiced their concerns regarding the potential for their industry to become embroiled in the ongoing trade war between the European Union (EU) and the United States. This sentiment was highlighted by L’Oreal’s chief executive Nicolas Hieronimus in comments reported by The Financial Times. Hieronimus underscored the apprehension shared by a collective of 16 companies in the beauty sector, who argue against their involvement in the economic tensions between the two parties.
Hieronimus specifically warned that any punitive measures targeting their industry could have negative repercussions for European brands, stating, “My only request to the people in Brussels is: just look at the trade balance and don’t raise your ‘red flag’ on a category where we can lose more than gain.” His remarks illustrate the industry’s concerns that escalating trade tensions could disrupt their operations and profitability.
Further supporting this position, Vincent Warnery, CEO of Beiersdorf, which owns the well-known Nivea brand, echoed similar sentiments. He cautioned that using the beauty industry as a bargaining chip in economic negotiations would be detrimental. “It would be a mistake, like shooting oneself in the foot,” he remarked, adding, “We can raise prices in the US, but that would harm our market share. Keep us out of the war. Don’t stoke the fire where there is no need.”
The backdrop to these declarations is the EU’s recent efforts to shield itself from the consequences of high tariffs that were previously imposed by former US President Donald Trump. There is indication that Europe is exploring avenues to mitigate these impacts, including potential adjustments to its steel import policies.
As tensions between the EU and the US continue to unfold, the beauty industry appears keen to maintain its autonomy from broader geopolitical conflicts, hoping to safeguard its interests and sustain its market presence in both European and American contexts.
Source: Noah Wire Services
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