The K-beauty industry, representing a range of skin care and cosmetics, has been thriving in the United States, with consumers increasingly favoring Korean products for their quality and unique ingredients. In 2024, Americans are estimated to have spent approximately $1.7 billion on K-beauty items, marking a remarkable growth of over 50% from the previous year. For many, including 27-year-old graphic designer Pearl Mak, South Korean products have become essential, making up 95% of her skincare regimen.
However, with the recent imposition of a 15% import tax by former President Donald Trump, the K-beauty market is preparing for an uncertain future. While this tax is lower than the previously threatened 25%, it has led to increased orders from retailers like Santé Brand and Senti Senti, as consumers rush to stock up before prices rise. Cheyenne Ware, founder of Santé Brand, noted a surge in orders by nearly 30% after the tariff announcement, as customers adapt to the looming changes.
Economist Munseob Lee from the University of California San Diego emphasized the inevitability of rising prices in the K-beauty sector, particularly affecting smaller sellers who operate on slim profit margins. Despite potential price increases, experts believe that the longstanding popularity of K-beauty products will sustain their demand, particularly among dedicated fans who seek no substitutes.
The divisive nature of Trump's trade strategy, which has also affected other cosmetics exporting nations like Japan and the EU with similar tariffs, raises questions about consumer shifts toward American-made alternatives. Yet, for enthusiasts like Mak, the efficacy of K-beauty products remains unmatched by US offerings.
The landscape of the K-beauty industry is poised for changes as retailers and consumers navigate the implications of tariff-induced cost shifts. As larger brands adapt more comfortably to price fluctuations, smaller businesses may struggle, making it essential for the industry to react quickly to maintain their hold on the American market.
However, with the recent imposition of a 15% import tax by former President Donald Trump, the K-beauty market is preparing for an uncertain future. While this tax is lower than the previously threatened 25%, it has led to increased orders from retailers like Santé Brand and Senti Senti, as consumers rush to stock up before prices rise. Cheyenne Ware, founder of Santé Brand, noted a surge in orders by nearly 30% after the tariff announcement, as customers adapt to the looming changes.
Economist Munseob Lee from the University of California San Diego emphasized the inevitability of rising prices in the K-beauty sector, particularly affecting smaller sellers who operate on slim profit margins. Despite potential price increases, experts believe that the longstanding popularity of K-beauty products will sustain their demand, particularly among dedicated fans who seek no substitutes.
The divisive nature of Trump's trade strategy, which has also affected other cosmetics exporting nations like Japan and the EU with similar tariffs, raises questions about consumer shifts toward American-made alternatives. Yet, for enthusiasts like Mak, the efficacy of K-beauty products remains unmatched by US offerings.
The landscape of the K-beauty industry is poised for changes as retailers and consumers navigate the implications of tariff-induced cost shifts. As larger brands adapt more comfortably to price fluctuations, smaller businesses may struggle, making it essential for the industry to react quickly to maintain their hold on the American market.
