Last night, President Trump announced a series of new tariffs on goods entering the USA. The announcement outlined the increase in rates on goods from the UK, EU, China, Japan and more
The US has announced global tariffs. This included a 10% tariff for the UK, which is the baseline rate that will apply to the most of the world.
As with other industries, the beauty industry will be affected by this announcement. However, with with much of the beauty industry manufactured outside of the UK, it is likely that businesses in our sector will be impacted significantly by tariffs set for Europe, China, Japan, South Korea and South East Asia.
The British Beauty Council is working closely with the Government to highlight the impact this will have on the industry and will be feeding back to the Department for Business and Trade.
On the announcement, Victoria Brownlie MBE, Chief Policy & Sustainability Officer at the British Beauty Council says:
‘It is difficult to underestimate the impact these new tariffs will have on the beauty industry as a sector trades globally. The Council has reiterated this to Government and are working with officials to build a robust evidence base on the effect this will have on UK businesses. We are also exploring potential policy asks that could relieve pressure on businesses.’
Below is a full run down of the tariffs introduced by President Trump:
– A minimum 10% tariff will apply to most countries, including the UK, Australia, Argentina and Saudi Arabia. It’s set to start on 5 April.
– 60 countries are facing increased tariffs, which the President considers to be ‘reciprocal’, these include:
- European Union: 20%
- China: 54%
- Japan: 24%
- South Korea: 25%
- India: 26%
- Thailand: 36%
- Taiwan: 32%
– Mexico and Canada are already facing 25% tariffs with some exceptions.
There are currently some questions regarding rules of origin (substantial transformation) and how tariffs will be applied as well as whether the new tariffs are inclusive of current tariffs on the sale of goods to the US, the Council is consulting government on these points and will follow up with further clarification.
The British Beauty Council welcomes any case study information outlining the effect of these tariffs on your business. Please get in touch with the team by emailing joinme@britishbeautycouncil.com.
