Cleansed, Toned and Tariffed: What’s Happening to K-Beauty in the U.S.

Story by:

• Christine Clark- [email protected]

Media contact:

• Christine Clark- [email protected]

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Q: Why are consumers around the world drawn to Korean beauty products and why are they suddenly more expensive in the U.S.?

Lee: Korean beauty products became popular because they offer innovative items at reasonable prices. Think of lightweight sunscreens, snail mucin serums and multi-step skincare routines. They are known for gentle ingredients, creative packaging and trends that spread quickly through social media.

Now, shoppers in the U.S. are worried about higher costs because of new tariffs. Imports from Korea face a 15% tariff and the end of the de minimis exemptionmeans shipments under $800 that once entered duty-free are now taxed. For now, many retailers and consumers are relying on inventory they stocked up earlier. But once those supplies run out, prices are expected to rise further.

Q: How are U.S. consumers reacting to higher prices - and what does that tell us about consumer behavior more generally?

Lee: American consumers are feeling both the pinch of higher prices and the uncertainty of what comes next. Some rushed to buy before tariffs kicked in, while others are cutting back or searching for alternatives. With K-beauty, though, the mix of innovation, variety and trend-setting appeal is not easily found in domestic substitutes. Japanese products could be one alternative, but they are subject to the same tariffs, limiting consumer options.

My research has shown that during recessions, low-income householdsand Black householdsoften bear the heaviest burden, since the prices of necessities tend to rise faster and these families have less flexibility to switch to cheaper alternatives. The impact of tariffs will similarly depend on which products see the steepest price increases and how easily consumers can substitute for them.

Q: What does this mean for the K-beauty industry, from big brands to small startups?

Lee: For large Korean brands, the U.S. market remains vital and they have more flexibility. Some may absorb part of the cost or even shift some production abroad. Moving production to the U.S. could create jobs, but policy uncertainty makes firms hesitant to commit to long-term investments.

For small startups and niche retailers, tariffs pose a much bigger challenge. Many depend on direct-to-consumer online sales and cannot easily spread out the extra costs. That raises the risk that smaller players get squeezed out, leaving fewer options on the shelves. For U.S. consumers, the impact is not just higher prices, It also means less variety, especially when it comes to niche or up-and-coming products.

Q: What bigger lesson can we take from this about global trade and everyday products?

Lee: The K-beauty story shows that trade policy is not abstract. It affects what people buy every day. Products like sunscreen or instant noodles are part of global supply chains and sudden rule changes ripple quickly, from factories in Korea, to retailers in the U.S. and individual households here as well. Tariffs don't just hit foreign producers, they raise costs and shrink choices for American consumers too.

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