International Tariff Tensions Thaw, But Uncertainty Remains For Cosmetics Industry
There are signs of progress in US trade relations and tariff disputes in the EU and China, but visibility is never assured under the administration of President Donald Trump in a volatile global climate.
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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.
As European industry’s concerns grow about “politicization” of regulatory programs, the United States-Mexico-Canada Agreement’s cosmetics annex directs regulatory authorities pursuing new rules to give due consideration to scientific and technical guidance documents developed through international collaboration.
Canada has agreed to end its practice of quarantining and retesting certain cosmetic-OTC drug products from the US, as part of a cosmetics-specific annex to the United States-Mexico-Canada Agreement. “There will be a very significant and immediate benefit to US exporters of OTC products to Canada,” a Personal Care Products Council exec said.