How the K-Beauty Industry in South Korea is affected by Trump’s rates

Cars and smartphones can be ranked among the largest exports of South Korea to the United States, but few goods are inspired by the cosmetic products of the Asian country afterwards.

K -beauty – a term that covers a wide range of skin care, makeup and cosmetics from South Korea – is praised because of its quality and value, moving, moving a towering search in recent yearsS

The global attractiveness of South Korean culture also helped to drive the popularity of his cosmetics.

The US-based Pearl Mak tells the BBC that it has been presented in K-Beauty products by its friends. South Korean serums are more suitable for her skin than some Western brands that tend to be harsher, says the 27-year-old graphic designer.

Now “95% of my skin care is made up of K-Beauty products,” she adds.

D -Mack is not alone in her preference for skin care brands in South Korea. The Americans have spent as much as $ 1.7 billion ($ 1.3 billion) on K-Beauty products in 2024, according to industry estimates. This marks over 50% growth compared to the previous year.

K -BEAUTY products are often more attractive than their Western counterparts – but they also contain ingredients that are not so common in the West – from cardiac to snail mucina.

US President Donald Trump has already imposed a 15% tax on South Korean goods traded between Seoul and Washington.

This is less than 25% the Trump fee threatened, but many users do not risk.

The American retailer of the As-Beauty Santé saw orders with spikes by nearly 30% in April, as soon as Trump revealed that he was sweeping taxes on imports in most of the world.

“When tariff messages came across, customers became strategic with how they would withstand the storm,” Santé Brand Cheyenne Ware told the BBC.

“Consumers are preparing for uncertainty.”

Another K-Beauty merchant, Senti Senti, has ordered more products since Trump began his tariff threats, says manager Melno Jong.

This week, she received reports from suppliers calling on retailers to “stock up before tariffs.”

Both retailers have stated that prices of K-Beauty Products are likely to increase as taxes are increasing in industry costs.

“Anyone who tells you that prices will remain equal in the next two years is naive,” says G -ja Ware.

Prices are required to rise, especially for the smaller sellers of cosmetic products on platforms such as Amazon, who work with thin profit margins, says economist Munseob Lee of the University of California in San Diego.

Despite the higher prices, the global popularity of South Korean culture means that K-Beauty products are likely to remain in search of the United States, he says.

“Careless buyers can be excluded from the higher price, but fans will not find an easy replacement.”

D -Ja Zhong agrees. She believes customers will still want to buy K-Beauty products, but raising prices may mean that they buy fewer items than before.

Higher prices are unlikely to stop MS Mak from buying its favorite products.

“It depends on how much the price shoots, but so far I am ready to pay more to buy the same products,” she says.

Large K-Beauty marks are in a much better position to take the price of tariffs than their smaller rivals, says a business consultant based in South Korea Eyal Victor Mamou.

These bigger companies will be able to avoid great price increases for their customers as they have higher profit margins, he says.

But the smaller K-Beauty companies that make their products in South Korea will struggle to keep the cost cover, adds Mr Mamou.

“It will take a while, as most goods sold in the short term have already been put into operation at current prices, but we will see that it will be played soon.”

In recent days, President Trump has made deals with Japan and the European Union, which will see their exports to the United States, subordinated to the same 15% tariffs as South Korea.

This means that the countries that are home to some of the world’s largest cosmetics brands face the same levies as the K-Beauty Industry.

It is central to Trump’s commercial policies to see more goods that are being made in America.

But it is yet to be seen whether it will mean that buyers are moving to American beauty products.

Ms. Mack says she doesn’t see the products from us as attractive alternatives.

“I often look for alternatives created by Americans, but I still can’t find those who are as effective as those I use. So I still didn’t go for American products.”