Trump tariffs threaten South Korea’s K-Beauty boom in the US

South Korea’s globally popular K-beauty industry is facing a major setback in the United States as a new 15 per cent import tariff, imposed by US President Donald Trump, threatens to disrupt trade flows and raise prices for consumers. Known for its innovative products, natural ingredients, and affordability, K-beauty has built a devoted following in the US, where it generated $1.7 billion in sales in 2024, a 54 per cent increase from the year before, according to the US International Trade Commission.

But the growth may soon slow. The US has ended South Korea’s tariff-free status for cosmetics, part of a broader policy shift aimed at reducing reliance on foreign manufacturing and encouraging American-made goods. South Korean beauty products are now subject to a 15 per cent import tax, sparking uncertainty across the industry.

Retailers brace for higher costs and slower sales

K-beauty retailers in the US have already begun adjusting their strategies in anticipation of rising costs. Santé Brand, a California-based online seller, saw a 30 per cent spike in orders in April as consumers rushed to stock up before the tariffs took effect. “When the tariff announcements hit, customers got strategic with how they were going to weather the storm,” Santé founder Cheyenne Ware told the BBC. “Consumers are preparing against the uncertainty.”

Other retailers, such as Senti Senti, say suppliers have started sending alerts urging them to place large orders while prices remain unchanged. Some sellers have increased inventory to stay ahead of expected cost hikes. But industry insiders warn that price increases are inevitable, especially for smaller sellers on platforms like Amazon who operate with thin profit margins.

Fans remain loyal—for now

Despite the looming price hikes, K-beauty loyalists say they’re not ready to switch to Western alternatives. Experts say that sentiment is common among loyal consumers, but casual buyers might be turned off by the higher price.

Some experts also say that large K-beauty brands with healthy profit margins may be able to absorb some of the costs, softening the impact for customers. But smaller firms based in South Korea will likely struggle to remain competitive, especially if tariffs are extended or increased.

Trade policy collides with pop culture

President Trump has justified the tariff strategy as part of a broader plan to bring manufacturing back to the US and level the playing field in global trade. In recent days, Japan and the European Union have agreed to similar 15 per cent tariffs on beauty exports to the US, meaning the policy will affect other global giants alongside South Korea. Still, industry analysts say South Korea is uniquely vulnerable because of how deeply its cosmetics brands are intertwined with global pop culture and consumer trends.

From BB creams to 10-step skincare routines featuring ingredients like snail mucin, heartleaf, and rice water, Korean skincare has reshaped beauty habits worldwide. And while US officials hope tariffs will encourage domestic production, many American consumers say they simply haven’t found homegrown equivalents that measure up. For now, K-beauty remains a staple on American vanities. But if tariffs stay in place, it may soon become a luxury item rather than an everyday essential.

(With inputs from agencies)