Heightened Vigilance Among Korean Retailers as New U.S. Tariffs Loom
Korean enterprises in the realms of beauty, fashion, and retail are bracing for impact as the Trump administration prepares to enact novel tariffs on small-value shipments originating from South Korea.
Effective from midnight Friday in Washington, a 15 percent tariff will be imposed on Korean goods entering the United States in packages valued at $800 or less—a category that previously enjoyed exemption from import duties.
In a bid to retain their customer base, businesses are urgently instituting discounts and alternative incentives. Industry insiders remarked on Tuesday that the majority of cross-border e-commerce transactions utilize private courier services, meaning recipients will bear the cost of the tariffs.
There exists a palpable concern that this additional financial burden could stymie the burgeoning market growth.
According to Statistics Korea, the value of Korea’s online direct-to-consumer exports in the second quarter soared to 738.8 billion won (approximately $528.6 million), reflecting a 7.5 percent year-on-year increase. The United States constituted 18.7 percent of that figure, following China at 47.1 percent and Japan at 23.9 percent.
Cosmetics firms, which rely heavily on sales from the U.S. market, are responding swiftly. CJ Olive Young has alerted American consumers that any orders placed after 11 a.m. on Wednesday through its cross-border platform, Olive Young Global Mall, will incur the newly instituted 15 percent tariff at checkout.
The platform witnessed a staggering 70 percent increase in sales in the first half of this year compared to the same timeframe in 2024, with over half of the sales attributed to U.S. customers.
“We will implement simultaneous discounts across both domestic and international malls from August 29 to September 4, and maintain targeted promotional activities to alleviate the burden for our U.S. clientele,” stated a representative from Olive Young.
At Amorepacific’s Global Amore Mall, approximately 70 percent of visitors hail from the United States. “The new tariffs may adversely affect our sales within the U.S.,” commented an Amorepacific spokesperson. “We are exploring measures to relieve customer burdens, utilizing promotional events and packaging modifications to reduce costs.”
Fashion platform Musinsa is similarly poised to amplify promotions on its international site. “The United States is an essential market for us,” remarked a company spokesperson. “We plan to meticulously observe consumer reactions.”
Grocery delivery service Kurly launched its “Kurly USA” cross-border platform on August 25, yet is initially restricting user access due to uncertainties surrounding tariffs.
“We are monitoring the situation closely and will decide the timing of a broader rollout accordingly,” a spokesperson asserted.
“Many of our sellers are small and medium-sized enterprises, and our clientele often prioritizes affordability,” expressed a representative from the e-commerce platform Gmarket. “We are contemplating strategies to mitigate the repercussions of the tariffs.”
“We are evaluating support measures and developing strategies to foster cross-border e-commerce in response to the current circumstances,” stated an official at the Ministry of SMEs and Startups.
Nonetheless, some analysts argue that the anticipated impact may be somewhat mitigated, citing the competitiveness of Korean products and the existence of similar tariffs imposed on other nations.
Source link: Koreajoongangdaily.joins.com.
