K-beauty brands are bracing themselves for the possibility of increased U.S. tariffs.

Earlier this month, U.S. President Donald Trump began informing America’s trading partners about their new duty rates under his tariff regime. First mentioned were Japan and South Korea, which from Aug. 1 will be subject to 25 percent across-the-board duties.

These changes are poised to impact South Korean beauty exports — which have long entered the U.S. free of duty thanks to the Korea Free Trade Agreement established in 2012 — in a big way. 

“The tariffs would drive up the cost of goods, which will lead to higher prices for U.S. consumers and contribute to inflation significantly,” said David Chung, founder and chief executive officer of contract manufacturer iLabs, and Morae Packaging, which manufactures in South Korea. “Recovering from these new costs would be extremely difficult not only for the beauty industry but the broader economy.”

In recent years, K-beauty has experienced a boon all over again in the U.S. 

Brands like Beauty of Joseon, TirTir, Medicube, Anua and Mixsoon have risen to virality on TikTok as a new generation of consumers discover the allure of Korean skin care and makeup. Thanks to its viral assortment of SPFs, Beauty of Joseon’s sales soared from $31 million in 2020 to more than $100 million in 2023, cofounder Sumin Lee previously told WWD. This month, the brand will make its Sephora debut.

Many other next-gen K-beauty brands are breaking into U.S. retail, too: Ulta Beauty announced last week it will add 13 new brands in the category to its own assortment this summer, including Fwee, TirTir, Kaja, Rom&nd and more. Even on TikTok Shop, K-beauty dominates, with Medicube ranking as the number-two brand by sales on the platform in May, netting $4.1 million during the period, per Charm.io. 

And though U.S. consumers’ appetite for K-beauty is in part because of the category’s general affordability, increased tariffs threaten to impact that accessibility. 

“Our key concern is how much prices are going to be raised, and how we can support our customers on this impact — our last choice is raising prices,” said Winnie Zhong, cofounder of New York based Asian beauty retailer Senti Senti, which operates locations in Williamsburg and Chinatown. 

She added that since Senti Senti is an import business, it will now have to forecast even more inventory, which can be difficult given storage space and rental costs in New York City.

Charlotte Cho, founder of e-tailer Soko Glam and skin care brand Then I Met You, said many brands are still treading carefully as they await more certainty on the tariffs front. 

“It’s a bit fresh — brands are not sure of how to react to this potential threat,” she said, adding the tariffs would “negatively impact the K-beauty U.S. market, which is a big focus for Korean brands right now; U.S. retailers or distributors would also be squeezed, or expect the brands to contribute to the tariff tax. In the end, unfortunately it’s the customers who will lose as this will just lead to an increase in prices across the board.”

Cho added that because many brands ship their packaging and raw materials from parts of Asia, it’s not only Asian beauty brands that will be affected by such changes. 

Nevertheless, Medicube, known for its sculpting Age-R Booster Pro skin care wand and, more recently, its salmon DNA skin care creams and serums, anticipates it may be able to avoid implementing significant price increases. 

“Most K-beauty products, including Medicube’s, have a final retail price around $10 to $20, and due to their relatively low production costs — even when tariffs are applied — these products can remain competitively priced,” said Junehee Nam, U.S. director of media relations of Medicube USA. “With that being said, we do not anticipate that any price increases will be large enough to meaningfully impact consumer demand.” 

She did say, however, that “we do expect tariff changes to impact corporate profitability…The greatest challenge brands currently face is not the tariff itself, but the uncertainty surrounding it; sudden shifts require brands to redesign profit forecasts, marketing campaigns and global strategies.” 

Said Joey Chung, director of communications at Sungboon Editor Skincare, known for its overnight sheet masks: “Although higher tariffs could temporarily raise costs, we think that K-beauty’s global competitiveness extends well beyond price advantages; it is rooted in continuous product innovation, distinctive and effective formulations, and an exceptional ability to adapt swiftly to emerging beauty trends — all of which contribute significantly to strong consumer trust and loyalty in international markets.”