Back in April, President Donald Trump announced a litany of proposed tariffs. Following a 90 day delay period, the President has now announced new tariffs for countries including Japan and South Korea, whilst also pushing his deadline for imposing other measures back.
Here’s a quick tariffs update and how it could affect trade…
Earlier this week, the President announced a 25% tariff on all goods imported from Japan and South Korea – these will be imposed on top of any existing measures. So far, there have been no announcements on whether specific industries will be hit harder than others.
Japan holds 4.5% of the share of imports into the US currently, with South Korea sharing 4% – a fair chunk of products that currently enter the country.
What’s more, beauty makes up a large part of both countries economic footprint. In Japan, the sector contributes USD$35 billion to the country’s GDP, with global players including Shiseido, Kao, Kosé, and Pola Orbis trading out of the territory. The US is collectively third in market share amongst importers of Japanese cosmetics and skincare products.
South Korea’s beauty market is smaller but growing exponentially. According to Korea’s Ministry of Food and Drug Safety cosmetics exports reached $10.2 billion in 2024, a 20.6 per cent increase from the year prior. With trends like slugging, glass skin and tech-first scalp treatments all originating in the territory, it’s clear the country’s trade isn’t just about products, it’s driving global innovation too.
This tariff announcement was made as President Trump’s original tariffs deadline of July 9th came around. This deadline has now been moved to August 1st, with the President denying to make a 100% commitment, he said: ‘I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that.’
At the same time, leaders from the US and Vietnam have struck a deal, reducing the original tariffs threatened by President Trump in his April announcement. Now, tariff rates on goods coming into the US from Vietnam would be reduced down to 20% from the 46% originally planned.
It is important to note that products being shipped through Vietnam from another country of origin will face 40% tariffs. So, businesses trying to ease tariff costs by diverting products will not be able to do so successfully.
You can check for import and export measures on products using this government tool.
