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Could Trump’s tariffs deliver luxury to the masses?

April 15, 2025

My TikTok feed has been hijacked by group of Chinese manufacturers lamenting the decline in business associated with the Trump tariffs.  Many claim that they are the manufacturers for high end products from Gucci, Hermes, Prada and others, where the bulk of fabrication takes place in China with minimal finishing in Italy or France.  Whether this is true or not (and the luxury brands have not denied it!), the chinese manufacturers are urging consumers on TikTok t0 buy direct from them.

Again, if true, the savings are enormous.  A birken handbag is estimated to cost USD1,100 to manufacture with the item selling for USD38,000 in the US.  LuLuLemon yoga gear for $6-8 per piece and Nike shoes for $4.  By going direct to consumers the manufacturers cut out the brands as middlemen taking the bulk of the revenue.

How do the manufacturers prove their provenance when they are restricted from selling the brand directly?  This is  a question of how well the direct sellers can guarantee quality and design of the good in question.  Many work with teams in Italy who design the items which then get mass manufactured in China.  Enticing some of these designers to join the Chinese firms can ensure that Western tastes are catered to and the product line refreshed.  Quality control is easy to maintain by not cutting corners.

Ironically,  Trumps tariffs could have the effect of stimulating the mass importation of Chinese made luxury products into the US by making them affordable and cutting out the middlemen.

Tags: Tariffs
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https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png 0 0 Stephen https://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png Stephen2025-04-15 07:40:452025-04-15 07:41:45Could Trump’s tariffs deliver luxury to the masses?
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