Trump Tariff Announcement Sparks Korean Cosmetics Hoarding in the US: Anticipation of 25% Reciprocal Tariff Sparks Price Surge Fears, Increasing Early Purchases
Recently in the US, there has been a noticeable increase in demand for Korean cosmetics following President Donald Trump's policy announcement. As President Trump announced a 25% reciprocal tariff on Korean products starting from August 1st, US consumers are moving to secure products before the tariffs take effect. This article explores the reasons behind this trend and how the K-beauty industry is responding.
Why Are Korean Cosmetics So Popular?
Korean cosmetics are gaining global popularity for their excellent cost-effectiveness, and the US is no exception. Despite their relatively low prices, they are recognized for their high quality, earning strong consumer trust. Their notable features, such as minimal smudging, low skin irritation, and good absorption, have received favorable responses, especially among American female consumers.
"The future is uncertain, but one thing is for sure. I don't want to lose my favorite specific Korean cosmetics."
An influencer with 500,000 followers on TikTok expressed this sentiment in an unboxing video of purchased Korean cosmetics. Similarly, American consumers are showing a strong desire to maintain the Korean beauty products that are part of their essential routines.
Trump Tariff and Consumer Reactions
A hoarding frenzy for Korean cosmetics is taking place among Americans ahead of the tariffs. In April 2025, as President Trump announced a 25% tariff on Korea, this trend started in earnest. Although there was a 90-day suspension, when President Trump confirmed through a letter that reciprocal tariffs would be implemented from August 1st, the pre-purchase demand among consumers further accelerated.
A Korean-American named Esther Lee, residing in California, recently purchased a year's supply of Korean cosmetics, including sunscreen and eyeliner, in large quantities. She stated that 80% of her makeup products are Korean, and she plans to buy them directly during visits to Korea or ask visiting acquaintances to purchase them if price hikes become a reality.
Regarding these consumer reactions, Professor Rob Handfield of North Carolina State University commented, "Some Americans are taking action ahead of the tariffs." He also noted that the possibility of Korea and Japan reaching an agreement with the US before August 1st seems low.
Concerns in the K-Beauty Industry
K-beauty brands are facing uncertainty due to the anticipated tariff policy from the US government. The most significant expected impact is on price competitiveness. One of the key factors contributing to their success in the overseas market so far has been the 'reasonable price range'.
Leah Yoo, a content creator running a K-beauty brand in the US, stated, "Tariffs will largely impact the beauty industry, and I will monitor the trends over the next six months." She expressed concern that the greatest strength of Korean cosmetics was their reasonable prices and that price increases due to tariffs could be a significant burden on the brands.
Popular brands with high consumer loyalty are directly at risk of purchase power declines due to price increases. This measure could be a significant risk for small brands that have expanded their distribution networks using their growth potential in the US market as a stepping stone.
Conclusion
Recent policy changes by the Trump administration are sensitively affecting both Korean cosmetics consumers and the K-beauty industry in the US. In the short term, the hoarding phenomenon might bring positive demand for brands, but in the medium to long term, the decline in price competitiveness may impact market share. The results of future tariff negotiations and industry response strategies will be an important turning point for K-beauty's global position.
YURICOS is strengthening its position in the global market with K-beauty products known for reliable quality and price. If you want more detailed information about Korean cosmetics, please contact YURICOS.
