China Exposes Insane Markups of U.S. Luxury Goods and Black Internet Loses It

Yahoo

14-04-2025

Things in the U.S. vs China tariff war have just reached a new height and this time—popular luxury goods are at the center of it. And when we tell you why, you'll understand why folks on the internet are absolutely living for it!
As previously reported by The Root, President Donald Trump announced he's increasing tariffs on Chinese-manufactured goods, setting the rate at a whopping 145 percent in about 90 days. As a result China decided to retaliate and hit the U.S. with an increase too and raised their tariffs on our goods to 125 percent.
In the days that followed, many Americans were understandably shook and confused as to how these tariffs would affect their pockets and the price of things they buy seeing that a lot of our clothes and shoes come from overseas. But thankfully, manufacturers in China decided to blow the lid on Trump's plans and took to TikTok to show how U.S. consumers can buy directly from them to potentially avoid all the tariff turmoil.
Specifically, when it comes to luxury goods such as purses, shoes, makeup and more—Chinese manufacturers are spilling the tea on social media on how those high-ticket items from brands like Hermes, Prada, Chanel and more are made in their country. They claim that they're just being shipped to Europe where the labels are put on them and the prices get jacked up.
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In one video provided by News Nexus Official, one Chinese manufacturer broke down the exact cost of each part of the coveted Birkin Bag and explained how individually, the parts are cheap. From the hardware to the leather to the thread, the bag only costs a little over $1,000 to make—even though Hermes sells them for anywhere between $10,000 to $2 million.
But now, thanks to these tariffs, if folks are trying to get out of shelling out high prices for the bag—they can get them directly from China where they claim to use the exact same products and will sell the bags (without the Hermes logo) for a fraction of the price.
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In a similar video exposing how Chanel cosmetics are made, another Chinese user on TikTok broke down the fact that it only costs manufacturers in her country $5 to make them and that the luxury logo is just added onto the products in France. They also explained that it's simply a matter of 'brand brainwashing' because most consumers would think that the luxury brand would feel cheaper if it said 'made in China' on it.
'Who makes Chanel cosmetics? 42 percent are crafted by Chinese artisans. We don't do 'cheap goods,' we do understated luxury,' the woman said.
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Naturally, once this info hit TikTok, folks were quick to get to talking! As noted by TikTok user The Kempire, he expressed his pleasure in how China is dropping receipts on the U.S. and how the luxury goods are made, likening the moment to 'The Real Housewives of Potomac' season
'Honestly this fight between China and the U.S. is giving Monique Samuels versus Gizelle [Bryant] from season five of 'The Real Housewives of Potomac,'' he said. 'And if you're a housewives fan, you understand completely what I mean. Because China has their binder out and they're exposing everything. And the reads are LANDING! The reads are EPIC!'
In the comments section of his video, other users expressed similar sentiments.
'The US went Low, China is sitting next to the Devil. Love it,' wrote one user.
'I love that none of these countries are bowing down to that orange wig and his cabinet of combs,' said another user referencing President Trump.
Added another user, 'China said play with yo momma, not me! Here for it!'
In a separate video from user Coach Chitown who also reacted to China exposing the secrets, one user commented: 'I now see why billionaires don't wear designer.'
Said one other user: 'If it's cheaper, I'll take it.'
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