As U.S. President Donald Trump shifts course again on tariff policy, worries are deepening in the K-food and beauty industries. The U.S. Supreme Court put the brakes on country-by-country reciprocal tariff measures, but policy predictability fell as Trump immediately moved to impose a 15% global tariff on all imports. The industry sees policy uncertainty, rather than the tariff rate itself, as the core risk factor in medium- to long-term strategy.
According to the retail and food industries on the 23rd, caution is spreading over strategy-setting amid debate on recent U.S. tariff policy. The current tariff rates alone are not much different from before, but it has become harder to gauge policy continuity after Trump moved to restart a global tariff under a different legal basis right after the Supreme Court's ruling. A retail industry official said, "When the tariff rate is not functioning as a fixed variable, drawing up medium- to long-term plans premised on price adjustments or investment decisions carries significant risk," adding, "We are in the stage of stockpiling response scenarios rather than finalizing and executing a strategy. For the time being, we have no choice but to watch the situation."
The latest global tariff began right after the U.S. Supreme Court on the 21st (local time) ruled the reciprocal tariff unlawful. Trump signed an executive order imposing a 10% tariff on all imports worldwide based on Section 122 of the Trade Act, and the next day raised it to 15%. The measure applies for up to 150 days from the time the executive order takes effect.
In the food industry, the perceived impact of tariffs differs depending on whether companies have production bases in the United States. CJ CheilJedang and Nongshim say the direct impact is limited because they produce and sell major products at U.S. plants. Both corporations plan to handle volumes mainly through existing production bases and roll out medium- to long-term local strategies after monitoring the trajectory of tariff policy and follow-up actions by the U.S. administration.
By contrast, corporations with a high share of exports to the United States from Korea face a relatively heavy tariff burden. Samyang Foods, which has no U.S. plant, has a structure in which tariffs are applied in full to domestically produced volumes, but it is adjusting the timing of its response rather than raising prices immediately, given strong local sales growth. Orion produces some products such as Kkobukchip in Korea for export to the United States, but judged that the short-term tariff impact is limited because the U.S. share of its sales is about 1% and not large.
OTOKI is building a U.S. plant with completion targeted for the end of 2027, but it has to bear the tariff burden until completion. Separately from the tariff issue, OTOKI plans to proceed with its existing local strategy, including expanding local distribution networks and launching localized products in the second half.
The beauty industry is likewise closely watching the volatility of the Trump administration's tariff policy. With steady U.S. demand for K-beauty, immediate sales damage does not appear large, but many see the disruption to policy continuity as a risk. Cosmetics ODM (original design manufacturing) companies with U.S. production bases, including Kolmar Korea and COSMAX, plan to minimize tariff effects through local plants. Home beauty device corporation APR also says it will maintain its existing business structure without finalizing production transfer or new investment plans premised on the U.S. market.
It is the same in the fashion industry. Global fashion ODM Hansae has about 80% of its overseas business in the United States. Since it has been pursuing vertical integration centered on Latin America even before the tariffs, it plans to use that to diversify trade risks.
Industry watchers say many of the responses are closer to preliminary measures to stockpile options against uncertainty than to finalized medium- to long-term local strategies. A food industry official said, "Now is a time to manage variables well rather than make aggressive investment decisions," adding, "Once the direction and continuity of policy are clarified, full-fledged judgments will be possible."
Kim Tae-hwang, a professor in the Department of International Trade at Myongji University, said, "It is hard to say the tariff issue has been settled with this ruling," noting, "we cannot rule out the possibility that Trump will use other legal bases to apply tariffs." He added, "Rather than rushing into local production to avoid tariffs, it is important to find ways to reduce factors that could lead to trade risks."