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Birkin, Lululemon, and TikTok: How China is using the tariff war for luxury goods to go direct from factory to your feed

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In a surprising twist in the ongoing US-China trade war, Chinese factories have found a new way to reach American consumers: TikTok. Instead of the usual viral dance moves or beauty hacks, these videos are focused on how luxury goods are made—specifically, how US shoppers can bypass retail markups and tariffs by purchasing directly from Chinese manufacturers. The result? A growing number of videos claiming to sell high-end goods like Lululemon leggings, Louis Vuitton handbags, and Birkin bags for a fraction of their retail price.

Viral videos and hidden costs
One of the most popular TikTok videos, with nearly 10 million views, showcases a woman standing in front of factory machines, offering yoga pants made in the same facility as Lululemon’s for just $5-$6, compared to the $100 retail price. "The material and the craftsmanship are basically the same because they come from the same production line," she confidently states, tapping on the fabric. Similarly, another video shows a man in a factory offering Louis Vuitton-style bags for only $50, claiming they come from the same manufacturers as the luxury brand's products.


These videos are part of a larger wave of "Trade War TikTok" clips that have flooded the platform since President Trump’s tariff increases. With tariffs rising, Chinese manufacturers are eager to use the app as a new marketplace, showcasing everything from leggings to luxury handbags and breaking down how much it costs to produce these items. Some even suggest that the only difference between a branded product and its cheaper counterpart is the label.


The luxury brands respond
However, the claims of these videos have been swiftly challenged by the luxury brands themselves. Louis Vuitton, for example, has repeatedly stated that none of its goods are made in China. A representative from Lululemon also clarified to The Independent that only about 3% of its final products are manufactured in China, and the company provides a full list of authorised suppliers on its website. Despite this, many TikTok users are still drawn to the idea of undercutting the high retail prices of luxury goods.

Experts, like Conrad Quilty-Harper, author of Dark Luxury, suggest that many of these videos are not offering genuine products but rather counterfeit or "dupe" goods. "They’re trying to conflate fake manufacturers in China with the real ones," Quilty-Harper explained. "They’re very clever with their social media, and they’re very effective at driving demand in the West."

A broader strategy?
The timing of these TikTok videos isn’t coincidental. With a crucial tariff exemption for goods under $800 set to expire in May 2025, many believe these factory-to-consumer clips may be part of a broader strategy to capitalise on the policy shift. The looming deadline is driving both Chinese manufacturers and TikTok creators to promote direct sales to bypass the coming duty increases.

Some creators are even using their platform to voice frustration with the US’s trade policies. One TikTok user commented, "Americans, you don't need a tariff, you need a revolution. For decades, your government has shipped your jobs to China...while selling your future for profit."

Counterfeit concerns and legal implications
Despite the appeal of cheaper alternatives, experts warn that buying directly from these sources could expose consumers to counterfeit products. China has long been the epicentre of the global counterfeit industry, with U.S. Customs seizing $1.8 billion worth of fake goods in 2023 alone. The risk is significant, and some industry leaders are urging consumers to be cautious about what they buy from overseas factories.

The counterfeit industry is not a new issue. As Quilty-Harper points out, China’s approach to intellectual property enforcement has historically shifted based on geopolitical tensions with the US. "This is part of a huge geopolitical battle," he noted. "It's fascinating to see this propaganda fight happening on TikTok."

The trade war’s larger impact
This TikTok trend also underscores a larger issue in the trade war between the US and China. President Trump's decision to impose hefty tariffs on Chinese imports has rattled American businesses, with companies like Nike considering shifting production back to the US to avoid complications. The tariffs, particularly the 145% levy on Chinese goods, have not only increased the price of everyday items but also created new avenues for Chinese manufacturers to market their goods directly to US consumers.

While some American shoppers embrace the idea of bypassing these inflated prices, the situation reveals much about the shifting dynamics of global supply chains. The viral TikTok trend also reflects the growing frustration with the global trade system and the inflated prices for goods that many consumers see as unnecessary.

This new TikTok trend is not just about consumer goods. It’s a symptom of a larger geopolitical strategy, with China increasingly using its manufacturing power as leverage in the ongoing trade war. In addition to the viral videos, China has recently halted shipments of seven rare earth metals that are critical to industries such as defence, energy, and technology. This move underscores China’s ability to weaponise its control over global supply chains, particularly in sectors where the US is heavily reliant on Chinese imports.

As tensions continue to rise, it’s clear that the future of trade between the US and China is anything but predictable. Whether these TikTok-driven trends will have any lasting impact on the global luxury goods market or if they’ll only serve to further complicate the relationship between the two superpowers remains to be seen. However, one thing is certain: TikTok has become a new frontier for the war over trade, tariffs, and the global economy.

(With inputs from TOI)
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