China is retaliating against US President Donald Trump's tariffs by promoting direct sales of luxury goods from Chinese manufacturers to consumers at significantly lower prices. The products range from handbags to apparel and cosmetics, with prices notably lower than retail. On X, many American TikTok users shared videos from Chinese suppliers showcasing high-quality products made for luxury brands like Birkin and Louis Vuitton. These suppliers offer direct sales to consumers at a fraction of the retail price, often without the brand logos. In these videos, Chinese suppliers emphasise high-quality materials and skilled labour to manufacture the products.
One user shared one such video on X wrote, "China TikTok is so messy rn because now that the Chinese government has legalised Counterfeit products of all American goods because of the tariffs, they're now exposing a lot of Big brands and how their stuff is manufactured and encourages you to buy them in-house China for cheaper."
A supplier of Birkin bags revealed that the production cost of a bag selling for $34,000 (Rs 29,23,320) is around $1,400 (Rs 1,20,372). The supplier claimed that the bag makers receive a minimal profit margin, while the luxury brand retains the majority of the profit due to its logo and branding. "More than 90 per cent of the price is for the logo, but if you do not care about the logo and want the same quality, same material, you can just buy from us," he says in the video.
Watch the video here:
Another TikTok user shared a video of a Chinese manufacturer selling Birkenstock footwear and wrote, "My fyp is suddenly filled with Chinese manufacturers trying to sell directly to Americans. The gag is that even with paying the import tariff and shipping, it's still way cheaper than buying the same products through American corporations. We are not winning this trade war lmao."
"China is definitely having their moment... The tea is steaming hot," a user wrote, sharing a video of a Chinese supplier offering replicas of Fila, Under Armour, and Lululemon products at significantly lower prices. The supplier claimed Lululemon items, typically $100, can now be bought for $5-6.
Here are other videos:
Some Chinese manufacturers have also created detailed videos showcasing their production processes to counter the perception that "Made in China" implies poor quality. Meanwhile, other suppliers have even offered free global shipping and, in some cases, even covering import duties.
Notably, the US and China are engaged in a heated trade war, with the US imposing tariffs of up to 145% on Chinese goods and China retaliating with duties of up to 125%. Recently, China's Ministry of Commerce urged the US to lift its retaliatory tariffs after a US announcement exempted certain consumer electronics, like smartphones and laptops, from these duties.
Many on the internet argued that the US can't win the trade war against China, given China's manufacturing prowess and competitive pricing. Some users are speculating that direct sales might become the only affordable option for luxury goods if tariffs keep rising. Others wondered why American consumers still buy these items at full price from retail stores when they're now available at a fraction of the cost through direct sales.
