Cosmetics Industry, Consumers Will Lose Under Latest Tariff Proposal In US-China Feud
This article was originally published in The Rose Sheet
The Personal Care Products Council says US-proposed tariffs on an additional $200bn of Chinese products, including a wide range of cosmetics and vital materials, will undermine American companies’ competitiveness and pass costs along to consumers. The group’s Executive VP-Global Strategies Francine Lamoriello testified on the matter in an Aug. 23 public hearing held by the US Trade Representative.
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“With some products facing tariffs as high as 30%, many businesses will have no choice but to pass along those costs to consumers,” an industry coalition called Americans for Free Trade asserted in an August letter to President Donald Trump in response to proposed escalations of tariffs on Chinese goods. “Price increases will likely hit shoppers just as they are making their holiday purchases,” the group noted.
The firm is confident that prestige beauty demand in China will remain a constant, translating to double-digit growth over the long term, but it’s taking a prudent approach to guidance in light of possible tariff impacts, among other unknowns. Lauder’s first-quarter sales totaled $3.52bn, up 11% in organic terms.
“It’s an optimistic time for our industry in China,” PCPC’s Francine Lamoriello, executive VP of global affairs, observed in an interview. While there have been positive signs, recent government reorganization and escalating trade tensions with the US potentially complicate matters.