US tariff hike threat revives K‑Beauty export plans; firms test price, promo and local production scenarios
Creatrip Team
7 months ago
Rising talk of US tariff increases from 15% to 25% has put K‑Beauty exporters on alert, though the industry is taking a measured, scenario‑based approach rather than panicking. President Trump said tariffs on cars, wood and drugs (and reciprocal tariffs) could return to pre‑trade‑deal levels until Korea completes implementing a bilateral agreement. Cosmetic makers are reassessing price adjustments, promotional strategies, and portfolio changes to share cost burdens. Companies are also re‑evaluating use of US subsidiaries and local production (e.g., US factories) to mitigate duty impact. Functional cosmetics like sunscreens and acne treatments can be classified as OTC (over‑the‑counter) drugs under US law, which raises particular exposure. Major contract manufacturers (ODM) already with US plants — such as Kolmar and Cosmax — expect limited direct impact, while firms with US legal entities (subsidiaries) are exploring routing sales through them to protect margins. Overall, having navigated previous tariff uncertainty, the sector prefers preparedness with flexible scenarios rather than alarm.
