As tensions rise between the United States and China in an intensifying trade war, a surprising new front is emerging: the luxury fashion industry. A recent report by Glitz suggests that Beijing may retaliate against US tariffs by loosening restrictions on counterfeit luxury goods, especially those mimicking American and European high-end brands.
President Donald Trump has imposed a staggering 145% tariff on imports from China, triggering a swift response from the Chinese government, which countered with its own 125% tariffs. “We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect,” China’s Ministry of Commerce said in a statement.
These developments follow a temporary 90-day pause on additional tariffs, announced during Trump’s April 2 ‘Liberation Day’ speech. While some electronics were granted exemptions, including Chinese-made products, a new ‘semiconductor tariff’ is reportedly in the works.
The counterfeit curveball
While official negotiations continue, an underground resistance appears to be forming. Social media, especially TikTok, has been flooded with videos of Chinese factory insiders lifting the veil on luxury brand manufacturing. One viral video features a man standing in a warehouse lined with bags that look strikingly like high-end designer items.
“For over 30 years, we’ve been the OEM factory for nearly every luxury brand you can name,” the man says. “But we were just workers-we made pennies while brands made billions.”
He boasts of China’s unmatched craftsmanship, quality control, and supply chain agility, suggesting that attempts to move luxury manufacturing out of China have failed due to poor quality elsewhere. His message? Cut out the middleman and buy directly from us.
Factory Secrets Go Viral
Other TikTok creators are following suit. One woman revealed that Beyond Garments, a Hangzhou-based manufacturer, produces knits and cardigans for brands like Dior, Sandro, Maje, and Versace. Another video exposed Thai Ho Group as the producer behind cosmetics sold under Dior, Lancôme, and L’Oréal.
These revelations have sparked heated debates online. “It’s wild to think we’re paying thousands for a bag that costs maybe $50 to make,” one commenter said. “If it’s the same factory, the same materials, what are we really paying for? A logo?”
De Minimis no more
The recent removal of the de minimis exemption, which previously allowed goods under a certain value to enter the US tariff-free, has further complicated the picture. Now, every product coming from China or Hong Kong, regardless of its value, is subject to full tariffs. That means even small brands that manufacture in China and ship directly to American customers will face higher costs.
Even giant corporations like Nike, which rely heavily on Asian manufacturing, are beginning to feel the squeeze. Some are now looking into reshoring, bringing parts of their production back to the US, but the process is slow and costly.
For the everyday consumer, the consequences are immediate. Prices on electronics, clothing, and cosmetics are likely to climb, and discretionary spending is already tight.
Luxury or illusion?
What’s unfolding on TikTok is a new form of digital activism. Chinese factory workers and insiders are using viral videos to reveal what’s long been kept behind closed doors. The narrative is shifting: from luxury as prestige to luxury as a marketing illusion.
Whether these videos will lead to meaningful change or simply fuel the counterfeit market remains to be seen. But one thing’s certain, the global luxury industry is now caught in the crossfire of a political and economic battle far bigger than itself.
