Tariff war: Chinese manufacturers go viral on TikTok for exposing luxury item costs

In response to US tariffs, Chinese manufacturers are exposing how little it costs to make luxury goods such as Birkins and Lululemon.

In response to Trump’s tariff hikes, Chinese manufacturers are going viral on TikTok for exposing just how little it costs to make luxury goods — from Birkin bags to Lululemon tights. They’re not just showing the production process, they’re advising viewers on how to bypass markups and minimise tariffs by ordering directly from factories.

The videos, which have collectively pulled in millions of views, show everything from bulk packing lines to breakdowns of unit costs, or simple piece-to-camera explainers walking through production costs.

 This has also resulted in a plethora of reaction videos from Western creators commenting on, sharing, and supporting Chinese manufacturers “exposing” luxury brand prices.

‘Trade war TikTok’ reveals manufacturing prices, how to order direct

Colloquially on the platform this content is being referred to as “trade war tiktok” and “Chinese Manufacturer tok”. The response has been reminiscent of American creators mass-downloading and promoting Chinese social media app Rednote in the lead-up to the short-lived TikTok ban back in January. 

One account claimed a US$38,000 Hermès Birkin actually costs around US$1,000 to produce. Another said the same factories in Yiwu that make Lululemon’s US$100 tights offer near-identical versions for about US$5-6 a pair due to coming from the same production line. 

Another video compared a bulk bag of 20 Tide Pods-style laundry capsules — priced at US$1 in China — to the US retail price of roughly US$13.

Some of the videos are coming from sourcing agents or freight forwarders. Others appear to be filmed inside original equipment manufacturing (OEM) factories — facilities that also produce for Western brands under private label agreements. These posts often claim the only difference between what’s sold directly and what ends up on shelves is the branding.

While well-known Chinese platforms such as Alibaba are mentioned, some creators argue it’s comparatively expensive. Instead, they recommend lesser-known platforms in the west, including Chinese online shopping platform Taobao, which is also owned by Alibaba. 

Some also explain how to route purchases through Chinese freight forwarding services, or direct messaging via WhatsApp or WeChat. Some are even dropping links in the comments of popular videos. 

But as these videos grow in popularity, so do the risks. Periods of disruption like this can be fertile ground for scams, with opportunistic operators pushing dodgy storefronts or impersonating factory reps. It’s worth remembering that clicking on random links or scanning QR codes from unverified accounts can come with real-world consequences.

A ‘petty’ response to looming price hikes

These videos — which TikTok users are fondly calling ‘petty’ in a positive way — come at a time when US import costs are rising sharply due to the Trump administration’s latest round of protectionist tariffs.

This includes the end of the de minimis exemption for Chinese and Hong Kong goods. This means anything entering the country from those regions will now face steep import duties, regardless of value. For Chinese exports, that could mean a tariff of up to 145%.

Australian brands that manufacture in China and ship directly to the US have also raised concerns. For many small businesses, the de minimis exemption enabled low-cost fulfilment without needing a US warehouse or distributor.

The end of that loophole means tighter margins, higher compliance costs, and tougher competition in the US market. 

The move has also rattled companies like Nike, which relies heavily on Chinese and Southeast Asian manufacturing, and has prompted some brands to consider reshoring parts of their supply chain. But for everyday consumers, the effect is more immediate: higher retail prices at a time when discretionary spending is already under pressure.

While many of these workarounds may not survive regulatory scrutiny — the appetite for tariff workarounds is evident. If these changes are going to push already-exorbitant prices even higher, consumers are naturally going to be curious about how these goods are made and figure out how to avoid it.

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Reference: Tegan Jones: Economy: Smart Company