As the United States escalates its tariff war, South Korea’s food, fashion, and beauty industries—many of which have seen rapid growth in the American market—are bracing for impact. While the Trump administration has temporarily held off on imposing steep tariffs on Mexico and Canada, the announcement of a 10 percent additional tariff on Chinese imports has heightened concerns that South Korea could soon be targeted as well.
If President Donald Trump’s tariff policies are revived in full force, South Korean food giant Samyang Foods, known for its globally popular “Buldak” stir-fried noodles, could face significant losses. Unlike some competitors, Samyang Foods does not operate overseas factories, instead relying entirely on exports from its South Korean production facilities. A high tariff on South Korean goods would substantially affect its cost structure.
The company is currently weighing multiple scenarios. “If tariffs are imposed, we are debating whether to fully reflect them in export prices or absorb part of the losses ourselves,” a company official said.
Meanwhile, Daesang, which manufactures kimchi in Los Angeles, still exports a large portion of its products from South Korea. The company is closely monitoring any potential changes to U.S. trade policies, as kimchi is currently tariff-free.
Other companies are moving swiftly to establish U.S.-based production facilities. SPC Group, which operates Paris Baguette, recently confirmed an investment to build a bakery plant in Texas, with construction set to begin this summer and completion targeted for late 2027. “At present, dough exports to the U.S. are tariff-free under the Korea-U.S. Free Trade Agreement (FTA), but future tariff policies remain uncertain,” an SPC representative said. “A local production facility will allow us to adapt more flexibly to any changes.” Similarly, CJ Foodville, which operates Tous Les Jours, plans to complete a Georgia-based factory this year with an annual production capacity of over 100 million units.
The Korean fashion and beauty industries are also on high alert. K-beauty brands, which have rapidly expanded in the U.S. market by leveraging their affordability and high quality, could face serious setbacks if tariffs are imposed.
According to the Ministry of Trade, Industry and Energy, South Korea‘s cosmetics exports reached a record-breaking $10.2 billion last year, surpassing the $10 billion mark for the first time. The U.S. was the second-largest destination for South Korean beauty products, accounting for $1.9 billion in exports, following China at $2.5 billion.
Industry experts are exploring ways to diversify sales channels and increase partnerships with local original design manufacturers (ODMs) to localize production, a move that could mitigate the impact of potential tariffs.
By Jeong Seul-gi, Kim Geum-ie, Kim Hyo-hae and Minu Kim
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
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