How New U.S. Tariffs Are Impacting Global Beauty Manufacturing: China, Korea, or USA?

Introduction: Big Changes Ahead for Beauty Sourcing

The global beauty manufacturing landscape is shifting fast—and if your brand is currently sourcing from China, you’ll want to pay close attention.

On April 9, 2025, the U.S. government announced new tariffs of up to 104% on a wide range of imported goods from China, including select categories of cosmetics, packaging, and personal care items. This dramatic increase is already creating ripple effects across the beauty industry, particularly for U.S.-based indie brands and retailers relying on low-cost overseas production.

So where should your brand be producing in 2025? Let's break down the pros and cons of China, Korea, and U.S.-based manufacturing, and how to future-proof your sourcing strategy.

What's Changing: Tariff Update as of April 9, 2025

Here’s what you need to know:

  • New tariffs up to 104% will apply to various categories of cosmetics and packaging made in China.

  • Specific HS codes impacted include skincare base formulations, lip and eye makeup components, and plastic/metal packaging parts.

  • These tariffs are part of a broader trade policy revision aiming to reduce U.S. reliance on Chinese industrial supply chains.

👉 What does it mean for beauty brands?
Higher import costs, longer shipping lead times, and increased pressure to diversify your production strategy.

Comparing Your Options: China vs. Korea vs. U.S.

🇨🇳 China: Still Strong, But Facing Headwinds

  • Strengths: Extremely mature supply chain, flexible MOQs, fast R&D cycles, competitive cost

  • Challenges (2025+):

    • Tariffs significantly impact pricing for U.S.-bound products

    • Some buyers report tighter customs scrutiny

    • IP protection still a concern for high-innovation formulas

🇰🇷 Korea: Innovation Meets Premium Quality

  • Strengths: Globally respected for skincare innovation, hybrid textures, high-performance actives

  • Position: Tariffs are lower than China; growing reputation in prestige and clean beauty

  • Considerations: MOQs may be higher, lead times slightly longer; cost is mid-to-high

🇺🇸 USA: Local, Reliable, and Now—More Strategic

  • Strengths: No tariffs, fast shipping, strong compliance (FDA, OTC), easier collaboration

  • Why now: With Chinese tariffs rising, U.S.-based production (especially in California or New Jersey) offers a safer long-term bet

  • Challenge: Slightly higher unit cost—but often balanced out by lower shipping + faster launch timelines

Multi-Region Strategy: The Smart Move for 2025+

To reduce risk and maintain flexibility, more beauty brands are adopting a multi-region manufacturing approach, such as:

  • Skincare in the U.S. for regulatory ease and clean label trust

  • Packaging from Korea for aesthetic and innovation

  • Backup production lines in China for high-volume, cost-sensitive SKUs

At XJ BEAUTY, we help brands strategically allocate production across our U.S., China, and Korea facilities depending on their pricing, innovation, and timeline goals.

How XJ BEAUTY Can Help

We understand that today's brands need to balance speed, cost, quality, and risk. That’s why we offer:

  • Flexible global production options (U.S., China, Korea)

  • Up-to-date compliance with changing tariff & customs policies

  • Fast launch cycles with clear pricing and real-time communication

  • Custom turnkey solutions for skincare, makeup, and body care

Whether you need to shift your production out of China, add a U.S.-made line, or test K-beauty concepts, we’ve got the infrastructure and experience to make it seamless.

XJ BEAUTY