How South Korea's K-beauty industry is being hit by Trump tariffs

August 2, 2025

South Korean beauty products (K-beauty) have gained tremendous popularity in the United States due to their quality, value, and unique ingredients, with Americans spending approximately $1. 7 billion on these products in 2024, a 50% increase from the previous year. Following President Donald Trump's recent implementation of a 15% import tax on South Korean goods, many U.S. consumers are stocking up on K-beauty items in anticipation of price increases.

Who is affected

U.S. consumers of K-beauty products
K-beauty retailers in the U.S. (such as Santé Brand and Senti Senti)
Large and small K-beauty brands and manufacturers
Dedicated K-beauty fans like Pearl Mak
Smaller sellers of beauty products on platforms like Amazon

What action is being taken

U.S. consumers are strategically stocking up on K-beauty products
K-beauty retailers are ordering more inventory in anticipation of tariffs
Suppliers are alerting retailers to "stock up before tariffs"
President Trump is imposing a 15% import tax on South Korean goods
Trump is striking similar 15% tariff deals with Japan and the European Union

Why it matters

The 15% tariff will likely increase prices across the K-beauty industry
Smaller K-beauty companies with slim profit margins will struggle more than larger brands
The $1.7 billion K-beauty market in the U.S. represents significant economic activity
The tariffs test consumer loyalty to international products versus potential American alternatives
The situation demonstrates how trade policies directly impact consumer behavior and business operations

What's next

No explicit next steps stated in the article

Read full article from source: BBC