Chinese manufacturers are increasingly using the social media platform TikTok to sell goods directly to American consumers. This activity appears motivated by frustrations over US tariffs and a desire to bypass traditional retail channels.
The online trend involves videos showcasing various products, including luxury items. One viral video featured a man presenting a Birkin Bag, identifying it as an example of high-end handbags. The creators of these videos claim items from brands like Hermès, Louis Vuitton, Prada, and Gucci are crafted in their workshops.
These manufacturers state they use the same materials and skilled labor as the brands. They allege brands apply large markups after removing "Made in China" tags. The direct-to-consumer approach is presented as a way for manufacturers to earn more and offer consumers lower prices. Why Chinese manufacturers are going viral on TikTok
E-commerce platform DHgate is one site facilitating direct purchases. The app experienced a sharp rise in popularity, briefly topping download charts in the US. What is DHgate? App surges in popularity. DHgate is widely known for offering inexpensive copies, or "dupes," of branded goods.
The US trade relationship with China has been a focus for President Donald Trump. His administration has maintained tariffs on Chinese imports. Current rates include a base tariff plus a reciprocal tax, resulting in a cumulative rate of 145%.
Despite the appeal of buying direct for lower prices, consumers may not avoid these tariffs. A previous rule allowing purchases under $800 to enter tariff-free has ended. This change was implemented through an executive order and is scheduled to expire next month.
The online claims place European luxury brands such as Hermès, Louis Vuitton, and Prada in the middle of the trade dispute. These brands maintain their production is primarily in Europe, where rules require the final stages of manufacturing to occur to qualify for a "Made in Europe" label. How the US-China trade war took to TikTok.
Some industry analysts question the accuracy of the manufacturer videos. They suggest many of the products shown are likely counterfeits rather than items made for the luxury brands. Claims by video creators of being original equipment manufacturers for top luxury houses are improbable.
Journalist Noëmie Leclercq stated the luxury industry is secretive about manufacturing locations. However, she believes the majority of items displayed in the viral videos are counterfeits. Leclercq added the Chinese government has shown support for increasing counterfeit production as a response to US tariffs.
Patti Brennan, CEO of Key Financial, commented that such direct-sale apps might not serve as a long-term tariff workaround. She predicted the Trump administration would eventually become aware of the strategy. Brennan stated they could then "close this loophole one way or the other."
