On Wednesday May,15, 2019 our CEO, Erica Lermond, testified in Washington, DC before the United States Trade Representative (USTR), urging the Administration not to apply any tariff or trade restrictions on essential oils imported from the European Union under HTS heading 3301.
The Lermond Company supports the Administration’s goal of ensuring the economic viability of United States manufacturing and asserts that tariffs on essential oils will contradict this goal, while at the same time negatively impacting small businesses and consumers.
Erica stated “Essential oils produced in Europe are vital and irreplaceable building blocks in the fragrances and consumer products that our customers manufacture. Essential oils are agriculturally derived from regionally specific crops and alternative sourcing options do not exist. You simply cannot mimic the growing conditions found in Europe – the land, the micro climates, the weather – in any geographic region elsewhere in the world.”
She expanded by explaining that many of The Lermond Company’s customers bring a “strong manufacturing presence to many far-reaching towns in the United Sates of America” and that “tariffs on essential oils will have a direct impact on their local economics, their viability, and their competitive advantage as compared to global manufacturers.”
In addition, Erica drew attention to the fact that tariffs on essential oils will impact every single American by emphasizing, “We all use the products manufactured by our customers – laundry detergent, shampoo, and deodorant - on a daily basis, no matter our income level. We will all be affected, and this will essentially be a tax on every consumer and every household."
The Lermond Company is committed to proactively engaging with USTR to demonstrate that tariff-related cost increases will undermine the competitiveness of United States manufacturing, threaten the viability of small businesses, and affect the lives of every American.
Erica’s testimony coincided with the annual Fragrance Creators Association federal fly-in, on Capitol Hill, also held on Wednesday, May 15, 2019, where members of the association spoke with legislators and their staff on key issues of importance to the industry, including cosmetics reform, implementation of the Lautenberg Chemical Safety Act, as well as the impact of Chinese and European Union tariffs on small businesses.
We will continue to work on your behalf on trade and tariff related topics and will share updates as they become available.