Tariff Blow Hits Korean Beauty, Fashion and Food Exports in Q3–Q4
Creatrip Team
4 months ago
Korean beauty (K-beauty), fashion and processed food exporters are feeling the full impact of newly increased U.S. tariffs, which began to hit in the third and fourth quarters. Delayed U.S. orders and higher input costs have squeezed profitability—analysts estimate tariffs account for about 8% of K-beauty operating profit losses. OEM/ODM suppliers have been hardest hit as U.S. buyers delay orders and push higher costs onto manufacturers, causing some firms to report sharp revenue drops and wider operating losses. Brand owners (e.g., LG Household & Health Care, Amorepacific) say short-term effects are limited but are planning pricing, promotion and portfolio changes if tariffs persist. Food exporters face higher tariff rates and rising logistics costs; some (e.g., Samyang) have raised U.S. shelf prices. Companies are diversifying away from the U.S.—building plants in Europe (CJ CheilJedang in Hungary), expanding distribution (Nongshim) and establishing local subsidiaries (Pulmuone)—or increasing U.S. production and logistics to mitigate the tariff risk. Industry watchers warn the tariff burden will likely deepen in Q4 as pre-shipped inventory is exhausted.
