K-Beauty Faces Challenges Amid Trump Tariffs

As the K-beauty sector continues to attract a loyal following in America, the recent 15% import tax on South Korean goods is creating uncertainty that could affect prices and consumer purchasing behavior.

South Korea's beauty products, collectively known as K-beauty, have surged in popularity thanks to their quality and affordability, but recent tariffs implemented by US President Donald Trump are raising concerns. The import tax—though less severe than the initially threatened 25%—is prompting consumers and retailers to adapt strategically. American K-beauty enthusiasts like Pearl Mak report they will continue purchasing their favorite creams and serums, as many find them better suited to their skincare needs compared to Western brands.

In 2024, American consumers spent around $1.7 billion on these innovative products, reflecting a significant 50% growth from the previous year. However, the new tariffs are likely to drive prices higher, with retailers like Santé Brand and Senti Senti already preparing for increased costs. With higher prices expected, small sellers on platforms such as Amazon may feel the pinch most acutely, as they tend to operate on thin margins, according to industry economists.

Despite concerns over cost, the allure of K-beauty products remains robust due to the global popularity of South Korean culture. While some casual consumers might be deterred by higher prices, committed fans are less likely to switch to alternatives. Retail managers note that although buyers may purchase fewer products, their desire to maintain their K-beauty routines persists.

Large K-beauty brands possess better capacity to absorb increased tariffs than smaller firms, which could struggle to maintain price stability. It will take time for the full impact of the tariffs to be felt as current stock sells through, but industry experts anticipate significant cost pressures ahead.

Recently, similar tariffs were applied to goods from Japan and the EU, placing K-beauty on a level playing field with other cosmetics. As the US administration pushes for domestic manufacturing, questions arise about whether this will lead consumers to select American alternatives, though many K-beauty fans remain skeptical about finding products that match the quality they currently enjoy.