Key takeaways
- China says it will lower tariffs on US cosmetics under a US$60 billion reciprocal trade deal.
- The US has announced cutting duties on Chinese cosmetic brushes, shavers, and hair-removal appliances.
- The deal comes as China’s beauty market recovers and the US escalates its trade war with Canada.
China and the US have said they will cut tariffs on US$60 billion worth of goods imported from each other. The announcement encompasses US cosmetics and Chinese hair-removal appliances, among others.
Both countries have recommended a more favorable tariff treatment for “non-sensitive” products, which include personal care items. The reciprocal tariff reduction move came alongside an extension of a US–China trade truce. These positions were settled at the summit between President Xi Jinping and President Donald Trump in Washington DC, US, last week.
US Trade Representative (USTR) Jamieson Greer said in a statement on Sunday that the new “30-for-30” framework was “unlocking improved market access” for approximately 30% of US exports to China.
“The Trump Administration will continue to pursue fair, balanced, and reciprocal trade with China… pursuing balanced trade in non-sensitive goods, and securing market access for American farmers, manufacturers, businesses, and workers,” he added.
The US$30 billion valuation for the product lists proposed by each country was based on 2024 import data, according to the USTR.
Cosmetics catch a break
China has committed to reducing tariffs on cosmetics imported from the US. Meanwhile, the US released an import list for China, which includes cosmetic brushes and other mechanical personal care items.
The tariffs on China will be lowered for:
- “Artists’ brushes, writing brushes, and similar brushes for the application of cosmetics”
- “Shavers, with self-contained electric motor”
- “Hair-removing appliances with self-contained electric motor”
- “Electromechanical domestic appliances not elsewhere specified or included, with self-contained electric motor”
The last item is a catch-all term, but under the Harmonized Tariff Schedule, it is typically where electric toothbrushes are classified. Thus, the tariff minimizations may incorporate oral care devices.
Chinese and US beauty market
Asian beauty principles are influencing the global personal care industry, and as a result, China has emerged as a hub of attention and innovation for cosmetics.China will cut tariffs on US cosmetics.
The attention follows several years of subdued demand. COVID-19 pandemic disruptions, a slow travel retail rebound, and cautious consumer spending weighed on the region, prompting some multinationals to reduce their reliance on Chinese shoppers. However, China’s beauty market is recovering, and its importance to global players is coming back into focus.
Last month, Estée Lauder reported that Mainland China accounted for about 20% of its sales and posted 9% organic sales growth for the company in FY2026. Meanwhile, L’Oréal grew nearly three times faster than the Chinese beauty market in H1 2026, as prestige demand returned. The French cosmetics giant also invested in multiple Chinese beauty companies this year.
Alongside the renewed beauty business, the country has bolstered its cosmetics regulation frameworks to create a more competitive and reputable landscape. Last year, the government updated its cosmetics safety and approval policies, which looked to make the cosmetics market easier to navigate for international brands that were struggling to keep a stable footing in the country.
Additionally, last month, China introduced its first mandatory national safety standard regulating cosmetic products, placing limits on microbes, heavy metals, and harmful substances. The move marked the graduation of cosmetics standards from a matter of hygiene to a matter of safety in the country.
For US beauty companies, China is a significant but underexplored export market. According to the Personal Care Products Council (PCPC), the US exported US$15.8 billion worth of cosmetics and personal care products globally in 2025, including US$1.1 billion to China, making it one of the top three destinations for US exports in the category.
Yet, US brands hold 5% of China’s imported cosmetics market, compared with 24% for the EU. The PCPC has called for regulatory reforms to unlock further growth. “Trade barriers [with China] continue to restrict market access, raise costs, and put companies in the US at a disadvantage,” the American trade association previously stated.
The new tariff agreement may lower import costs for personal care companies trading between the world’s two largest consumer markets, the US and China.
There has not been an indication of the extent of tariff reductions nor any timing for implementation from the US, but China’s Ministry of Commerce has stated that about 90% of covered products will move to most-favored-nation rates.
US–China trade truce
After Xi Jinping and Trump’s meeting in Washington, DC, the pair agreed to extend a trade truce until January 10, 2027. China’s commerce ministry said the extension would provide room for both countries to evaluate their arrangement to resolve economic and trade issues, while considering how to proceed. The US and China extend their trade truce.
The US-China Board of Trade was established during Trump’s visit to Beijing in May this year. The board’s creation followed a trade war between the two countries that resulted in mounting and high tariffs. Since May, the US and China have repeatedly extended their trade truce.
The PCPC said in July that “cosmetics and personal care products should be among the first sectors addressed by the US-China Board of Trade.” It views the US-China Board of Trade as a significant opportunity to advance the industry.
“We urge the USTR to use the Board of Trade to secure reciprocal market access… and address trade barriers that weaken US competitiveness. Eliminating China’s most burdensome cosmetics trade barriers could increase US exports to China by up to 27%. Removing these obstacles would expand exports, strengthen domestic manufacturing, and support jobs in America.”
The new extension works to provide a “relatively stable and predictable policy environment” for cooperation among companies and continued active discussions, according to China’s commerce ministry. It said both countries will hold regular talks on potential investment opportunities and barriers, enhancing policy transparency and predictability, and responding to enterprises’ concerns.
Contrast with Canada
The reduced tariff agreement and trade truce with China come after the US conversely escalated its trade war with Canada.
In July, the US announced a 50% tariff on Canadian chemicals, cosmetics, and toiletries. The duties marked the first time trade agreement compliance failed to shield Canadian personal care goods from US tariffs.
What had protected the North American beauty sector from Trump’s slew of tariffs was the United States-Mexico-Canada Agreement (USMCA). However, the recent decision ignores it, impacting cross-border personal care product pricing and supply chains.
“These announced tariffs — which apply to a variety of cosmetic products and manufacturing inputs — can be expected to disrupt the highly integrated North American cosmetics and personal care products industry,” Darren Praznik, president and CEO at Cosmetics Alliance Canada, told Personal Care Insights. Cosmetic brushes feature on the US tariff-cut list.
Praznik warned that Trump’s violation of the USMCA and general unpredictability show Canada “and the world” that the US government “can no longer be trusted to keep any agreement to which they are a party.”
Later that month, Canada hit back at the US’s imposition of 50% tariffs by implementing its own “dollar-for-dollar” duties, featuring cosmetics.
“Recent US and Canadian tariff actions impact cosmetics and personal care products used by consumers every day,” Heather Helm, executive VP for Global Strategies at the PCPC, told Personal Care Insights at the time.
“The PCPC urges officials in the US and Canada to return to the negotiating table and work toward a resolution of the growing trade dispute between the two countries… and pursue a durable solution that restores certainty and keeps goods moving across our shared border.”
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