Key Takeaways:French cosmetics exports to the US could drop 21% in 2026 under President Trump’s tariffs, the French beauty federation warns, pushing companies to diversify toward faster-growing markets like India.India’s beauty sector is set to nearly double to $40.8 billion by 2030, driven by rising incomes, a growing middle class, and a rapidly expanding e-commerce ecosystem.L’Oréal and Estée Lauder are racing to scale in India, from new innovation hubs to venture investments in local brands.Western manufacturers of beauty products have a well-documented problem: US tariffs. India, one of the fastest-growing beauty markets and the largest emerging market, may be the only place big and fast enough to offset the hit to their balance sheets.French beauty companies, the world’s largest producers of luxury and mass cosmetics with L’Oréal at the lead, are banking on a European Union free trade agreement with India to soften the blow from falling US exports under President Trump’s policies. The deal is expected to be signed at the start of 2026, said Emmanuel Guichard, General Manager of the French trade union representing perfume, cosmetics, and personal care companies (FEBEA).“A key priority is India,” said Guichard, who has headed the FEBEA since 2021. “We are investing a lot in India in anticipation of the free trade agreement.”The EU–India relationship stretches back to 1962, when India became one of the first countries to forge diplomatic ties with the European Economic Community, a partnership later elevated to “strategic” in 2004. Efforts to seal a broad trade and investment pact have had setbacks.