Trump’s ‘most beautiful word’ paints ugly picture for K-beauty, fashion platforms

An Olive Young employee explains a product to customers at one of the store’s branches. [OLIVE YOUNG]

 
Korean beauty, fashion and retail companies operating cross-border e-commerce platforms are on high alert as the Donald Trump administration prepares to impose new tariffs on small-value shipments from Korea.
 
From midnight Friday in Washington, a 15 percent tariff will apply to Korean goods arriving in the United States in packages valued at $800 or less — a category previously exempt from import duties.
 
To avoid losing customers, companies are scrambling to offer discounts and other measures. Industry insiders noted Tuesday that most cross-border e-commerce is conducted through private courier services, meaning the tariffs will be paid by the recipient. Companies are concerned that the added burden could dampen the market’s growth momentum.
 
The value of Korea’s online direct-to-consumer exports in the second quarter reached 738.8 billion won ($528.6 million), according to Statistics Korea, up 7.5 percent on year. The United States accounted for 18.7 percent of that total, following China with 47.1 percent and Japan with 23.9 percent.
 
Cosmetics companies — which derive a significant portion of their overseas sales from the United States — are moving quickly. CJ Olive Young notified U.S. consumers that orders placed after 11 a.m. on Wednesday in the United States through its cross-border platform Olive Young Global Mall would include the 15 percent tariff at checkout.
 

A visitor looks at beauty products on display at a booth at the Kurly Beauty Festa 2024 on Oct. 10, 2024. [YONHAP]

 
Sales on the platform surged 70 percent in the first half of this year compared to the same period in 2024, with more than half of all sales coming from the United States.
 
“We will offer simultaneous discounts across domestic and global malls from Aug. 29 to Sept. 4, and continue to run targeted promotions to ease the burden for U.S. customers,” an Olive Young representative said.
 
At Amorepacific’s Global Amore Mall, around 70 percent of visitors are based in the United States. “The new tariffs may impact sales in the United States,” said an Amorepacific spokesperson. “We are reviewing ways to reduce customer burden through promotional events and packaging adjustments to cut costs.”
 
Fashion platform Musinsa is also preparing to ramp up promotions on its international site. “The United States is a key market,” said a company spokesperson. “We plan to closely monitor consumer response.”
 

Korean President Lee Jae Myung speaks as U.S. President Donald Trump listens during a meeting in the Oval Office of the White House in Washington on Aug. 25. [AP/YONHAP]

 
Grocery delivery service Kurly launched its Kurly USA cross-border platform on Aug. 25, but is initially limiting users due to tariff-related uncertainty. “We are keeping a close eye on developments and will determine the timing of a full launch accordingly,” a Kurly spokesperson said.
 
“Many of our sellers are small and midsize businesses, and our customers tend to prioritize affordability,” said e-commerce platform Gmarket. “We are exploring strategies to mitigate the impact of the tariffs.”
 
“We are considering support measures and strategies to promote cross-border e-commerce in response to the situation,” said a source at the Ministry of SMEs and Startups.
 
Still, some observers argue that the blow may be limited, citing the competitiveness of Korean products and the fact that similar tariffs apply to other countries.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LIM SUN-YOUNG [[email protected]]