How Korean Skincare Favorites Face Uncertain Future Under New Tariff Policies

Walk into any beauty store in Manhattan’s Koreatown, even on a dreary Tuesday afternoon, and you’ll find the shelves bustling with customers. However, recent conversations with store associates reveal concerning changes: a popular sunscreen has already altered its formula after moving manufacturing to the United States, while another bestseller has been out of stock for weeks.

These disruptions may only be the beginning if proposed 25% tariffs on South Korean imports are implemented. While South Korean acting President Han Duck-soo previously indicated a preference for negotiation over retaliation, the situation remains fluid. President Trump recently announced a 90-day pause on South Korea-specific tariffs, though the 10% universal tariff on all trading partners remains in place.

The Rise of Korean Beauty in America

Just ten years ago, finding Korean beauty products on American shelves was a rarity. Today, the United States imports an impressive $1.7 billion worth of cosmetics from South Korea annually, according to 2024 data from the US International Trade Commission. This figure surpasses imports from beauty industry powerhouse France, demonstrating the remarkable growth of the K-beauty phenomenon.

Korean beauty conglomerates have cultivated massive global followings. Amore Pacific, one of the industry’s giants, reported $2.87 billion in sales for 2024, with its Americas market outperforming China for the first time in company history—a significant milestone reflecting K-beauty’s Western expansion.

Alongside K-dramas and K-pop, American consumers have developed an insatiable appetite for affordable, highly effective Korean skincare products. From ultra-filtered sunscreens to glass-skin serums and elaborate 10-step routines, these products have revolutionized American skincare habits. What makes them particularly valuable is their advanced formulations—many Korean sunscreens contain modern UVA and UVB filters not yet approved by the US Food and Drug Administration, making them irreplaceable for dedicated users.

Consumer Anxiety Amid Tariff Uncertainty

The prospect of tariff-induced price increases and formula changes has sparked anxiety among devoted fans. “I’m unwell,” lamented one TikTok user recently. “If I have to use American skincare products my face will age horrifically in the recession.”

The appeal of Korean skincare extends beyond trendiness. While many American products leave a greasy feeling or white residue, Korean alternatives blend seamlessly into the skin while costing significantly less than other high-end imports. This accessibility stems partly from the Korea Free Trade Agreement of 2012, which has allowed Korean beauty products to enter the US market tariff-free.

Andrew Yeo, senior fellow at the Brookings Institution’s Center for Asia Policy Studies, notes that while K-beauty may not represent Korea’s largest export category compared to semiconductors or automobiles, it allows the country to capitalize on its cultural influence in America. Young Americans particularly have developed strong brand loyalty to Korean skincare lines, though rising prices could force budget-conscious students to reconsider their purchases.

Business Impact and Adaptation Strategies

Christina Im, owner of US-based Korean skincare retailer Olive Kollection, responded to tariff announcements by rapidly increasing inventory. In a single weekend, she purchased approximately $40,000 worth of products—four to eight times her typical weekly spending of $5,000-$10,000.

“As a small business, we don’t have that much cash on hand to buy everything in large bulk,” Im explained. “We just bought as much as we could for now and have to wait and see.”

While Im hopes to absorb some costs without dramatically raising prices, she recognizes that customer spending is already constrained. Her warehouse is currently filled with product samples as she prepares for potentially slower business conditions. She estimates her business might absorb part of the tariff impact, resulting in roughly 10% price increases rather than passing along the full tariff amount.

Korean-American skincare brand KraveBeauty addressed the situation directly through social media. Founder Liah Yoo explained that after seven years of maintaining prices below $28, upcoming shipments from South Korea will likely necessitate price adjustments. “It’s not something that’s coming out of greed. It’s actually inevitable at this point,” Yoo stated on TikTok. “I don’t think KraveBeauty is going to be an exception in this case.”

Distribution Challenges and Regulatory Hurdles

Even customers who order directly from distribution sites like Yesstyle and Stylevana face impending price increases. These platforms typically ship from warehouses in Hong Kong, and the elimination of the de minimis provision—which previously allowed packages valued under $800 to enter the US duty-free—takes effect May 2 for goods from China and Hong Kong.

Regulatory differences between countries create additional complications. Some Korean brands have already discontinued U.S. sales of sunscreens or relocated manufacturing to American facilities to navigate FDA requirements.

Kolmar, a manufacturer producing skincare for various brands, established operations in New Jersey and Pennsylvania in 2023, well before the current tariff discussions. However, domestic production introduces its own challenges, as products must comply with U.S. regulations—potentially omitting the innovative ingredients that attracted consumers initially.

“If it’s not made the same way and it doesn’t have the same effect, then people are not going buy these products,” Yeo observed.

The substantial investment required to relocate manufacturing becomes especially risky when economic policies could change within months or years. Park Sang-in, economics professor at Seoul National University, suggests South Korea may need to diversify its trading partners in response.

Consumer Response and Market Outlook

For Americans accustomed to achieving dewy, bouncy skin through Korean products, returning to domestic alternatives feels impossible. Munseob Lee, assistant professor of economics at University of California San Diego, predicts U.S. customers will likely absorb higher costs due to lack of comparable alternatives.

Social media already reflects this sentiment, with users showcasing recent bulk orders or frantically assessing their skincare inventories to determine what requires immediate restocking before prices increase.

As one TikTok user succinctly concluded: “Might as well just buy a plane ticket to Korea.”