On Wednesday, the US government announced that most global trading partners will face import duties, and stakeholders in many industry highlight that producing beauty and personal care products often requires input from the global supply chain, which could further complicate the situation.
Starting April 5, EU-based companies can expect to face 20% tariffs for goods exported from the European Union to the US market, but in European countries that are not in the EU, there were various different sets of tariffs. In the UK, this is 10%. In Switzerland, that’s 31%. Liechtenstein 37%. In Iceland, it’s 30%. Norway 15%.
Certain cosmetic ingredients are exempt from customs duties
The US government has also published a list of products that are exempt from both global and mutual tariffs. This includes numerous ingredients that are regularly used in cosmetic products and many medications and dietary supplements.
According to a 37-page document in the April 2nd executive order, “regulating imports to regulate imports to correct trade practices that contribute to the large and sustainable annual US trade obstacles,” some elements used in cosmetic and personal care formulations and product packaging are exempt from import duties.
Which cosmetics and personal care ingredients are exempt from customs duties?
These include trendy ingredients such as azelaic acid and benzoic acid, as well as somewhat controversial mineral oils used in numerous formulations.
Skin soother glycyrrhizin and its derivatives are also exempt from a variety of fatty acids and oils, including thickening and emollient properties, emulsifiers, stabilizers such as soy lecithin, and active ingredients such as c, e, and vitamins such as peptides and protein derivatives.
Mineral sunscreens list zinc oxide and titanium dioxide.
The “Clean Beauty” sector has gained great support in the US market, and also includes natural ingredients used in “Clean Beauty” products, such as the natural emulsifiers of olive oil, which can be used to help with plant thickness and stabilization, which is derived from its anti-aging and moisturizing benefits, emollients and stabilization purposes, plants, plants, plants, plants, thickness, plant thickness, plant thickness. Oil injections such as consumed coffee grounds act as a natural abrasive for exfoliating, offering texture and aromatherapy benefits.
There are also numerous ingredients that can be used in cosmetic formulations and potentially packaging materials such as beeswax, carnauba wax, carboxymethylcellulose, sucrose esters, vegetable glycerin, and natural plant-based charcoals.
This list also includes synthetic polymers, biodegradable polyethylene or PLA (polylactic acid), and papyrus or bamboo (if derived from the appropriate HTSUS code) that can be used in sustainable packaging.
Complete list of exemption ingredients You can see it here.
“Access to global markets is critical to industry success.”
Meanwhile, the US trade agency for the Beauty and Personal Care Industry Personal Care Products Council (PCPC) issued an official statement in response to the news, emphasizing that “access to global markets is important for the industry’s success and the ability to invest in US manufacturing and highly skilled work.”
PCPC Francine Lamoriello’s EVP Global Strategy states: “We believe this can be best achieved through a combination of approaches that address fundamental factors that lead to trade distortions and expand export and investment opportunities that strengthen our ability to compete worldwide.”
Lamoriello said the PCPC is “concerned about trade policies that could impact the growth of the industry and global competitiveness as it could lead to higher personal care products prices.”
“The cosmetics and personal care products industry is a key driver of the US economy, with over $68 billion in US manufacturing and 4.6 million US jobs,” she continued.
“Our industry contributes more than $300 million directly to our country’s GDP, and our products are essential to the daily lives of all US residents, using approximately 6-12 products each day, including sunscreen, toothpaste, shampoo, moisturizer, and fragrances.”
Lamoriello is committed to helping PCPC “maintain a balanced trade policy approach that creates US jobs and strengthens important global market opportunities for member companies, and to inform the administration and Congress of the impact that US trade policy will have on our industry, US investment and consumers.”
