Tariffs and K-beauty bruise French cosmetic exports to US

Tariffs and K-beauty’s global popularity have led to a contraction in French cosmetic exports to the US for the first time since 2008, excluding the pandemic. Meanwhile, French imports of beauty products rose around 6%, mainly due to online purchases from China and South Korea. 

According to data from the French Ministry of Customs, the country’s perfumes and cosmetics exports to the US fell by 25% between Q4 2024 and Q4 2025. The decline accelerated after the US introduced new tariffs in August 2025.

To absorb tariff costs, French exporters cut product prices by around 20% specifically for the US market rather than raising prices or shifting exports elsewhere. Prices for the same cosmetic products exported to other regions remained broadly the same.

Despite these efforts, the French Ministry of Customs says the lower prices did not prevent a drop in US demand for French cosmetics. US demand, instead, remained fixed on K-beauty imports. 

According to South Korea’s Ministry of Food and Drug Safety (MFDS), the US was the country’s largest cosmetic export destination in 2025, with exports increasing by 15.1% to approximately US$2.2 billion. 

France’s customs, on the other hand, reports a €541 million (US$644 million) loss in export value to the US for the same year.

The export declines align with the beauty industry’s financial reporting. French cosmetic giant L’Oréal experienced a 3.8% drop in North American sales in Q1 2025, a contrast to its previous growth. The company cited weakening demand for makeup and increased tariffs as the cause of the drop.

“The US was more challenging than anticipated,” L’Oréal CEO Nicolas Hieronimus said at the time.

While some beauty players have reconsidered their most strategic business regions, the newly concluded India–EU free trade agreement is emerging as a market to watch. The French Federation of Beauty Companies (FEBEA) positions the deal as a potential silver lining for the country’s cosmetic sector.

French cosmetics exports to the US fell sharply under tariff pressure, while competition is now rising at home.“Despite this stagnation in total exports, the French cosmetics sector remains confident thanks to the new opportunities opened up through free trade agreements, with India and Indonesia, to name just a few,” Emmanuel Guichard, general delegate at FEBEA, says.

Shifting strategies

In April 2025, the US announced 20% tariffs on imports from Europe, including French goods, as a part of President Donald Trump’s sweeping tariff agenda. Shortly thereafter, Washington introduced a 90-day pause period and lowered the rate to 10% while negotiations were taking place. The 10% tariff remains in place as of mid-2025, but further changes are still under discussion.

According to French customs, tariffs directly contributed to the 25% decline in cosmetics and perfume exports to the US, while pricing pressure and currency effects compounded the dive. The agency notes, though, that declining brand appeal played no part. 

In an interview with Vogue Business in May last year, Chanel’s global CFO Philippe Blondiaux said it recorded a 4.2% sales decline in the Americas due to weaker US market conditions. The luxury fashion and beauty house said it will not immediately pass US tariffs to consumers, but noted that the region poses “a quite difficult macroeconomic environment.”

Similarly, French prestige fragrance company Interparfums’ US operations dropped 20% in Q2 of 2025, due to regional softness.

In the same quarter, French beauty giant L’Oréal hailed the US a “particularly challenging and volatile operating environment” as it reported a like-for-like sales decrease of 3.8%. 

Beyond the US difficulties, France, which has historically played a central role in shaping the global cosmetics industry, also faced tougher competition in Asia. The French ministry’s data shows that cosmetics exports to ASEAN countries fell by 10% in 2025.

As pressure mounts in both the US and parts of Asia, French beauty players are increasingly reassessing where future export growth can realistically come from. 

L’Oréal, for example, has shifted its gaze to India. Hieronimus confirmed in a meeting with India’s Commerce and Industry Minister Shri Piyush Goyal that the company would significantly expand its local operations there in the coming few years.

K-beauty continues to gain ground in the US and is increasingly shaping demand in Europe as well.While many beauty brands have honed in on India in recent years, the recently announced free trade agreement could accelerate commitments. FEBEA advocated for the deal, hoping it might offset some of the country’s US tariff–related losses.

K-beauty kicks off

While French exports to the US declined, K-beauty exports to the US grew at double-digit rates, further strengthening South Korea’s position in the changing cosmetics market.

The US became South Korea’s largest cosmetics export destination in 2025, demoting China to runner-up. As the country continues to beat its own export records, K-beauty’s global reach becomes increasingly apparent, and the entire beauty value chain — from producers to retailers — is doubling down on it as a key growth driver. 

While South Korea faces proposed tariffs too, e-commerce companies are developing strategies to import K-beauty into the US without traditional barriers. The country has seen domestic sourcing partnerships launched with the goal of expanding national access to Korean skin care. 

As the products appear to be on a growth trajectory with no clear plateau in sight, mainstream, domestic retailers such as Sephora and Ulta are increasingly welcoming K-beauty to their shelves. Sephora, for example, has committed to sectioning off parts of its brick-and-mortar locations specifically for dedicated K-beauty zones.

Consumer demand for the products has not yet slowed either, and as South Korea clears one hurdle to expansion after another, it seems increasingly unlikely that demand will waver. 

Beyond the country’s language barrier strategies, price competitiveness efforts, and accelerated innovation pushes, French cosmetic companies may have to reassess how they compete.

With French customs reporting a 6% rise in beauty imports, competitive pressure is now hitting at home as well — especially since the increase is largely attributed to online purchases from China and South Korea.