How the K-Beauty industry in South Korea is struck by Trump prices

Cars and smartphones can rank among the largest exports from South Korea to the United States, but few products inspire a more dedicated audience than beauty products in the Asian country.

K -Beauty – A term that covers a wide range of skin, makeup and cosmetics from South Korea – is greeted for its quality and value, which has been pressure on demand in recent years.

The global attraction of South Korean culture has also helped to propel the popularity of its cosmetics.

Pearl Mak, based in the United States, told the BBC that it was presented to K-Beauty products by his friends. The South Korean serums are better suited to its skin compared to certain Western brands which tend to be harsher, says the 27-year-old graphic designer.

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

Ms. Mak is not alone in her preference for South Korean care brands. The Americans spent as many $ 1.7 billion (1.3 billion pounds sterling) on K-Beauty products in 2024, according to industry estimates. This marks an increase of more than 50% compared to the previous year.

K -BAUTY products are often at a more attractive price than their Western counterparts – but also have ingredients that are not as commonly found in the West – from the heart sheet to the snail mucin.

President Donald Trump has now imposed an import tax of 15% on South Korean products negotiated between Seoul and Washington.

It is less than the 25% levy that Trump had threatened, but many consumers take no chance.

The American retailer of K-Beauty, Health Brand, saw orders increase by almost 30% in April, just after Trump unveiled American import taxes on most of the world.

“When pricing announcements have reached, customers have become strategic with the way they were going to resist the storm,” Brand -based in the BBC said.

“Consumers are preparing for uncertainty.”

Another K-Beauty retailer, felt, ordered more products since Trump started his pricing threats, explains manager Winnie Zhong.

This week, she received alerts from suppliers urging retailers to “fill up on prices”.

The two retailers said that prices for K-Beauty products should increase as costs increase costs in the industry.

“Whoever tells you that prices will remain flat over the next two years are naive,” says Ware.

Prices cannot increase, especially for small beauty products sellers on platforms like Amazon, which operate with thin beneficiaries, said economist Munseob Lee from the University of California, San Diego.

Despite higher prices, the global popularity of South Korean culture means that K-Bauty products should remain in demand in the United States, he said.

“Occasional buyers can be deactivated by the higher price, but fans will not find an easy substitute.”

Ms. Zhong agrees. She thinks that customers will always want to buy K-Beauty products, but price increases can mean that they buy fewer items than before.

It is unlikely that prices prevent Ms. Mak from buying her favorite products.

“It depends on the price climb, but for the moment, I’m ready to pay more to buy the same products,” she said.

The big brands K-Beauty are much better to absorb the cost of the prices than their small rivals, explains Eyal Victor Mamou, consultant in South Korea.

These large companies will be able to avoid major price increases for their customers because they have higher beneficiary margins, he said.

But small K-Bauty companies that make their products in South Korea will find it difficult to maintain a lid on costs, adds Mr. Mamou.

“It will take a while to take effect because most of the goods sold in the short term have already been ordered at current prices, but we will see it soon.”

In recent days, President Trump has concluded agreements with Japan and the European Union which will see their exports to the United States subject to the same rates of 15% as South Korea.

This means that countries that house some of the world’s largest cosmetics brands are faced with the same samples as the K-Bauty industry.

At the heart of Trump’s trade policies is its ambition to see more goods made in America.

But it still remains to be seen whether it means that American buyers go to American beauty products or not.

Ms. Mak says that she does not consider products made in the United States as attractive alternatives.

“I often look for alternatives of American manufacturing, but I have not yet found the one that is as effective as those that I use. So I would not yet go for American products.”