US tariffs, which took effect in August, have weighed on South Korea’s beauty and food companies, pushing their exports to the US lower that month, data showed.
Shipments of South Korean cosmetics to the world’s largest market dropped 6.3% to $174.9 million in August from the year before, according to KED Aicel, the alternative data service brand of Hankyung Aicel.
It marked their first decline in US shipments since January.
Despite a steep drop in US-bound shipments, South Korea’s overall cosmetics exports rose 2.2% on-year in August.
Exports of basic skincare products – South Korea’s key beauty export category – plunged by 23.9% to the US.
By contrast, color cosmetics saw a 33.6% surge in US shipments, supported by the rising popularity of Korean color makeup.
Basic skincare items typically have higher average prices than color cosmetics.
Additionally, the end of Amazon’s promotional sales period in the US was cited as another factor behind the decline in export volume to the country.
RAMEN FALL LEADS DECLINE IN US EXPORTS
South Korean food makers saw their US shipments decreasing for the second straight month.
Ramen, a type of instant noodles, led the fall. Ramen exports to the US were down 11.9% in August.
Shipments of South Korea’s processed food to the US dropped 2.5% on-month to $69.32 million in August.
However, overall processed food exports grew 6.8% on-year last month.
In July, Korean food exports to the US ended their streak of double-digit monthly growth through June, ahead of the implementation of 15% reciprocal tariffs imposed by the US.
Ramen exports to the US fell 18.0% in July, reversing a 58.7% surge in June.
By Yoon-Sang Koh
kys@hankyung.com
Yeonhee Kim edited this article.
