Will Trump's tariffs make Korean beauty products unaffordable?

(NewsNation) — South Korea is known for its cars and electronics, but President Trump's recent tariffs have some worried about another booming export: Beauty products.

Last week, Trump warned South Korea that he would impose a 25% tariff on imports starting August 1 if the two countries fail to strike a trade deal.

If the president follows through, U.S. shoppers could soon pay more for toners, serums, and sunscreens from a country now as famous for its skin care routines as it is for K-pop.

In 2024, South Korea became the world's third-largest exporter of beauty products, with shipments topping $10 billion — a 20% increase from the previous year, according to Korea’s Ministry of Food and Drug Safety.

That same year, South Korea replaced France as the top cosmetics exporter to the U.S., much of it driven by sales through Amazon, according to Reuters.

Why is K-Beauty so popular?

Fueled by social media, the Korean beauty boom has taken hold in the U.S. with many of today's hottest cosmetic brands — including COSRX, Laneige, and Dr. Jart+ — tracing their roots back to Seoul.

TikTok creators have gone viral flaunting their Korean skin care hauls and glowing complexions, while hashtags like #KBeauty and #KoreanSkincare have appeared in millions of posts. On Reddit, a community dedicated to all things Korean beauty boasts more than 325,000 members.

While American skin care products tend to emphasize treatment and correction, Korean skin care is known for gentle, soothing formulas that prioritize prevention and overall skin health.

"K-beauty’s focus is on maintaining hydration and a healthy skin barrier for glowing, luminous skin," dermatologist Christine Hall, MRCGP, and a self-described devotee of Korean skin care, recently told Wirecutter. "It aims to nourish and soothe."

Another part of the appeal is affordability: Korean beauty products often cost less than their Western counterparts but offer comparable quality. Add in innovative ingredients, sleek packaging, and snappy marketing, and it's no wonder the K-beauty craze has taken off.

Will K-Beauty products get more expensive?

In April, Trump announced a 25% tariff on U.S. imports from South Korea as part of his broader "Liberation Day" trade package targeting dozens of countries.

The threat set off a wave of panic-buying, as Americans rushed to load up on serums, face masks, and creams imported from South Korea, CBS News reported. Fashion magazine Cosmopolitan even ran the headline: "15 K-Beauty products we’re stocking up on before tariff prices hit."

Trump ultimately paused the 25% levy, opting instead for a 10% global baseline tariff. If enacted, the new August 1 tariffs would raise import costs for K-beauty brands, but that doesn't mean prices will skyrocket.

Sarah Jindal, a beauty analyst at Mintel, recently told business magazine Fast Company she expects K-beauty products to be "very resilient" to tariffs.

Part of the optimism stems from beauty brands' high margins, which give them room to absorb tariff increases without passing them on fully to consumers. And because Korean beauty products already cost less than many U.S. brands, they're likely to remain affordable even with added import taxes.

There's also the importance of the U.S. market: In a hyper-competitive industry with a relatively small domestic customer base, it's unlikely Korean brands will stop courting American consumers, Jindal told Fast Company.

"This is just too lucrative a market for them," she said.

Major retailers in the U.S. — from Sephora and Ulta Beauty to Costco and Target — are in talks with K-beauty brands to launch sales in their physical stores, according to Reuters.

Industry experts told Reuters they also expect Korean brands to weather tariffs better than rivals, in part because many of them outsource production to contract manufacturers to keep costs down. 

An Byung-Jun, CEO of Korean beauty brand Tirtir, told Reuters Trump's baseline 10% tariff is "endurable" but said the planned 25% tariff may force the company to raise prices "a little bit."

South Korea’s Trade Ministry said last week that it will accelerate negotiations with the U.S. to achieve a mutually beneficial deal before the 25% tax on its exports goes into effect.