America’s environment for the ever-popular K-beauty industry is about to get a big wrinkle. It follows the move by President Donald Trump to slap a 15% tariff on South Korean imports. This decision is a big improvement from the 25% levy initially threatened. It will undeniably shape pricing dynamics and consumer behavior. Meet Pearl Mak, a 27-year-old graphic designer based in the U.S. She loves K-beauty products and swears by these South Korean skincare remedies.
In fact, 95% of Mak’s skincare routine is made up of K-beauty products, which speaks to how well they work for her skin. Introduced to these products by friends, she has found that South Korean serums outperform Western brands in quality and suitability. I do try to look for American-made alternatives, I won’t deny that, but I haven’t found any thus far that work as well as the ones I use. So I wouldn’t choose for American products just yet,” she said, emphasizing her level of commitment to K-beauty.
The international allure of South Korean culture has played a large role in the increasing mainstream popularity of K-beauty products. These products are particularly known for their unique ingredients, like heartleaf and snail mucin. More people think they are higher quality and better value. One industry estimate found Americans dropped nearly $1.7 billion on K-beauty last year. This increase is further evidence of the sky-high demand that has defined the last few years.
After the recent tariff announcement, US-based K-beauty retailer Santé Brand saw a nearly 30% jump in orders in April. This huge jump demonstrates the record demand for their products. Cheyenne Ware, a spokesperson for the company, explained that early on customers started taking strategic action with their buying. “When the tariff announcements hit, customers got strategic with how they were going to weather the storm,” Ware explained. She had a word of caution to sound about future pricing. “Anyone telling you prices will stay flat through the next two years is naive,” she concluded.
For larger K-beauty brands, absorbing the additional costs from tariffs is easily feasible. In comparison, it could be a massive blow to smaller businesses making their products in South Korea. For these smaller companies, the lack of adequate cost protections places them at a competitive disadvantage, risking higher prices for consumers. Even with these ambiguities, the demand for K-beauty products will continue to be high because K-beauty has already made its mark.
Pearl Mak said she would be open to higher prices on the products she loves, despite realizing that higher prices may follow. “It depends on how much the price shoots up, but as of now, I am willing to pay more to purchase the same products,” she said. Though number ten may sound like a defeatist attitude, it’s actually a common sentiment shared among K-beauty fans who value quality over price.
According to industry experts, the effect of tariffs on product cost won’t happen overnight. Eyal Victor Mamou noted, “It will take some time to take effect since most goods being sold in the short-run have already been commissioned at current prices, but we’ll see it play out soon.” As consumers come to terms with their own new economic realities, it is still too early to tell what lasting impact this could have on the K-beauty market.