US Tariff Threats Jeopardize K-Beauty Boom

Sales Team Leader Jay Liang restocks Asian beauty products at Senti Senti in New York on Friday, July 25, 2025.When Amrita Bhasin, 24, learned that products from South Korea might be subject to a new tax when they entered the United States, she decided to stock up on the sheet masks from Korean brands like U-Need and MediHeal she uses a few times a week.

"Because I did a recent haul to stockpile," she said. "I bought 50 in bulk, which should last me a few months."South Korea is one of the countries that hopes to secure a trade deal before the Aug. 1 date President Donald Trump set for enforcing nation-specific tariffs. A not-insignificant slice of the U.S. population has skin in the game when it comes to Seoul avoiding a 25% duty on its exports.Asian skin care has been a booming global business for more than a decade, with consumers in Europe, North and South America, and increasingly the Middle East, snapping up creams, serums and balms from South Korea, Japan and China."In the United States and elsewhere, Korean cosmetics, or K-beauty for short, have dominated the trend," said Mary Lovely, a senior fellow at the Peterson Institute for International Economics. "Korean beauty products not only add a lot of variety and choice for Americans, they really embraced them because they were offering something different for American consumers."Along with media offerings such as "Parasite" and "Squid Games," and the popularity of K-pop bands like BTS, K-beauty has helped boost South Korea's profile globally, she said.Vehicles and electronics may be South Korea's top exports to the U.S. by value, but the country shipped more skin care and cosmetics to the U.S. than any other last year, according to data from market research company Euromonitor. France, with storied beauty brands like L'Oreal and Chanel, was second, Euromonitor said.Statistics compiled by the U.S. International Trade Commission, an independent federal agency, show the U.S. imported $1.7 billion worth of South Korean cosmetics in 2024, a 54% increase from a year earlier."It's all part and parcel really of the same thing," Lovely said. "And it can't be completely stopped by a 25% tariff, but it's hard to see how it won't influence how much is sold in the U.S. And I think what we're hearing from producers is that it also really decreases the number of products they want to offer in this market."Senti Senti, a retailer that sells international beauty products at two New York boutiques and through an e-commerce site, saw a bit of "panic buying" by customers when Trump first imposed punitive tariffs on goods from specific countries, manager Winnie Zhong said.The rush slowed down after the president paused the new duties for 90 days and hasn't picked up again, Zhong said, even with Trump saying on July 7 that a 25% tax on imports from Japan and South Korea would go into effect on Aug. 1.Devoted fans of Asian cosmetics will often buy direct from Asia and wait weeks for their packages to arrive because the products typically cost less than they do in American stores. Rather than stocking up on their favorite sunscreens, lip tints and toners, some shoppers are taking a pause due to the tariff uncertainty."I'm not really sure where the direction of K-beauty will go to with the tariffs in place, because one of the things with K-beauty or Asian beauty is that it's supposed to be accessible pricing," Zhong said.Los Angeles resident Jen Chae, a content creator with over 1.2 million YouTube subscribers, has explored Korean and Japanese beauty products and became personally intrigued by Chinese beauty brands over the last year."I wasn't sure if those would automatically charge the entire package with a blanket tariff cost, or if it was just on certain items," Chae said. On its website, YesStyle says it will give customers store credit to reimburse them for import charges.At Ohlolly, an online store focused on Korean products, owners Sue Greene and Herra Namhie are taking a similar pause.They purchase direct from South Korea and from licensed wholesalers in the U.S., and store their inventory in a warehouse in Ontario, California. After years of no duties, a 25% import tax would create a "huge increase in costs to us," Namhie said.She and Greene made two recent orders to replenish their stock when the tariffs were at 10%. But they have put further restocks on hold "because I don't think we can handle 25%," Namhie said. They'd have to raise prices, and then shoppers might go elsewhere.Rachel Weingarten, a former makeup artist who writes a daily beauty newsletter called "Hello Gorgeous!," said while she's devoted to K-beauty products like lip masks and toner pads, she doesn't think stockpiling is a sound practice."Maybe one or two products, but natural oils, vulnerable packaging and expiration dates mean that your products could go rancid before you can get to them," she said.

The K-beauty industry, which has experienced a significant boom in recent years, is now facing uncertainty due to US tariff threats. The move has left many Korean beauty companies concerned about the potential impact on their exports.According to industry experts, the tariffs could lead to a significant increase in costs for Korean beauty products exported to the United States, making them less competitive in the market. "If the tariffs are imposed, it will be a huge blow to our business," said an official from a major Korean beauty company. "We have invested heavily in the US market and any disruption could put us at risk of losing our market share."The K-beauty industry has seen rapid growth in recent years, with sales expected to reach $13 billion by 2025. However, the tariff threats could jeopardize this growth.