Core Insights - The introduction of U.S. tariffs is expected to significantly impact the French beauty industry, particularly in terms of exports and employment [1][3][4] Export Impact - In 2024, French cosmetics exports to the U.S. were valued at nearly 3 billion euros, with fragrances accounting for half of this amount [2] - The Asterès study predicts a 21% decline in French cosmetics exports to the U.S. by 2026 due to a 15% customs duty on cosmetics and a 50% duty on metal packaging components, resulting in a sales loss of 620 million euros [3] - The French cosmetics sector had a trade surplus of 2.4 billion euros with the U.S. in 2024, but this position is threatened by the new tariffs [5] Employment Consequences - The anticipated decline in exports could lead to the loss of 10,900 jobs, including 2,700 direct jobs in cosmetics companies and 8,200 indirect jobs in related sectors [4] - Each direct job in the cosmetics industry is estimated to generate three indirect jobs, indicating a multiplier effect on employment losses [6] Industry Challenges - The French beauty industry is already facing challenges from regulatory inflation in Europe, increased competition from Asian markets, and the introduction of trade barriers [7] - FEBEA has initiated a "Beauty Industry Package," an emergency action plan aimed at protecting the competitiveness of the French cosmetics sector [7][8]