Skin Deep: Trump’s Tariffs and the Future of South Korea’s K-Beauty Industry

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• Posted On October 8, 2025

In 2023, the global Korean beauty products market was valued at $12.54 billion. It was projected to reach $25.98 billion in 2032. That’s a compound annual growth rate of 8.43%! However, this projection might only remain a projection and not a real number.

Why can’t this projection, according to Straits Research, be real? Especially when you can see how South Korea’s global soft power has reached every corner of the USA? Well, the answer is the South Korea tariffs that the US President wants to impose. It was a whopping 25%, which has since been reduced to 15%, but the question remains: What does it mean for the country’s k-beauty and skincare lovers?

Let’s find out below!

Trump Tariffs on South Korea

President Donald Trump announced this year that the US will start charging a 15% tariff on South Korean tariff. This happened right before the August 1 deadline for countries to reach agreements with the USA. If the deadline was missed, the tariffs would be higher! South Korea was originally facing a 25% levy if it didn’t strike a deal in time. 

Pressure was mounting on Seoul until it secured the 15% tariff rate in July 2025. The deal will also have Seoul invest $350 billion in the US. This has been nationally touted as a success, particularly due to the trade surplus of $56 billion with the US in 2024. Additionally, this deal doesn’t touch the US-South Korea military alliance and the billions Washington spends to support South Korean defense against North Korea. 

Trump has introduced several import taxes on foreign goods since he took office in January. He claims these tariffs will protect American jobs and boost local manufacturing. However, this volatile global trade policy has thrown the international economy into chaos. Right now, the 15% tariff on Korean products will cover semiconductors, cars, and other goods, particularly Korean beauty and skincare products. 

Cause and Effect: How K-beauty US Tariffs are Affecting Consumers

Vehicles and electronics make up the bulk of South Korean exports, but cosmetics are also one of the largest cultural exports. According to a free trade agreement in 2012, South Korean cosmetics entered the US market without tariffs. Presently, South Korea shipped more beauty and skin care products to the US last year than any other country! Even the home to giants like Chanel and L’Oreal in France couldn’t compete and took second place, according to Euromonitor. 

While there were fears that growth might slow down if South Korea doesn’t strike a new trade agreement. But now, the question is, what will happen to the market with a 15% Korean skincare tariff?

What We Don’t Know

Many important questions haven’t been answered yet, even after striking the new trade agreement. These include:

• How many retailers or brands will increase prices?
• Will they discontinue the products?
• Will smaller e-commerce shops change their strategies for sourcing to stay afloat?

Consumers and Retailers are Preparing Themselves

The bulk-buying began in April of this year. Many customers who swear by South Korean cosmetics and skincare products are worried. Most of them claim America-made beauty products are either too harsh or unsuitable for their skin. 

For instance, Senti Senti, based in New York, sources beauty products from South Korea and Japan. They haven’t passed on any costs related to tariffs to their customers. But the owner, Winnie Zhong, says, “I’m not really sure where the direction of K-beauty will go 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.”

Most smaller retailers, like Senti Senti, are worried about pricing. It might drive away customers in the long run. Meanwhile, the customers will have to pay a considerable amount of money or wait for their K-beauty and cosmetics to be directly shipped from Asia. 

The Soft Diplomacy of K-Beauty

The surge in K-pop, K-drama, and K-beauty can all be traced to the same timeline. But Korean beauty products have reached unbelievable popularity, mostly due to their packaging and formulations. It also introduced the American customers to some iconic trends, including:

• Sheet masks that offer quick and deep hydration. They became a go-to for anyone who wants an instant glow before a special occasion. 
• BB creams combine makeup with skincare, offering lightweight coverage with hydration and SPF. 
• The intense 10-step skincare routine that encouraged layering products based on what your skin needs, customizing along the way. On top of this, Korean skincare makes better and more affordable skin barrier products than their European counterparts!

Anyone who loves beauty knows that South Korea makes some of the most innovative products. Tariffs on South Korea could potentially affect a thriving market. Let’s look at more factors for its popularity:

• Four tenets: K-beauty follows product creation’s four tenets, which are innovation, ingredients, regimes, and fierce market competition. 
• Ingredients: Bee venom, white fungus, snail mucin, seaweed, and bamboo powder are some of the natural ingredients driving sales and interest in Korean skincare. The innovation in this industry has outperformed several other South Korean products, such as steel and automobiles. 
• Big retailers: Ulta Beauty, Target, and CVS jumped on the Korean skincare and beauty bandwagon. 

Wrapping Up: The Future of Korean Beauty and Skincare

The South Korea tariffs have been capped at 15%; however, this is still a massive rate for smaller retailers. When you consider how K-beauty entered the US market tariff-free, you can understand how many smaller retailers are involved in the industry. 

Big retailers like CVS, Ulta Beauty, or Sephora might not feel the heat. They already have high profit margins with or without Korean products in their stores. It will be the smaller players like Senti Senti who will be struggling to maintain the price and their margins. 

Korean beauty products are known for their quality and affordability. They are better made than American beauty products and less expensive than European alternatives. The 15% K-beauty US tariffs threaten to damage these critical factors that boosted their popularity in the first place.
Do you have an opinion you’d like to share on this topic? Then, send your write-up to us under the Beauty and Cosmetics Write For Us section!

F.A.Qs

1. What are Trump’s tariffs on South Korean skincare?

Trump’s tariffs on South Korean skincare products are set at 15%. This import tax is part of a wider trade policy shift aimed at decreasing reliance on foreign manufacturing and encouraging American-made goods.

2. What are the tariffs on South Korea?

The current tariffs on South Korean imports are 15%, which is lower than the initially threatened 25% tariff.

3. Does the US have a tax treaty with South Korea?

Yes, the US has a tax treaty with South Korea, designed to prevent double taxation and provide relief for individuals and companies operating in both countries.

4. Who is the largest importer of South Korea?

Vietnam is South Korea’s largest import partner, making up 21% of total imports. In terms of import percentages, China is the largest supplier to South Korea, accounting for 22.2% of South Korea’s imports.

Eliza Gordon

Eliza Gordon is a seasoned writer for the health industry dedicated to providing fact-based health information. She sources concise facts from authoritative sources to ensure maximum credibility and shares guidelines to lead a healthy lifestyle.