What a $34,000 bag really costs: Chinese suppliers show luxury goods at 90% lower prices amid trade war with US

Chinese manufacturers who supply high-end products to global luxury brands like Birkin and Louis Vuitton are now selling similar items directly to consumers online at a fraction of the original prices. Viral videos on social media show these suppliers offering the same goods—minus the branding—at nearly one-tenth the market price.

Luxury products at factory rates

Several videos circulating on X feature Chinese suppliers revealing that they produce items for brands such as Chanel, Estee Lauder, Bobbi Brown, and more. These suppliers are offering the same goods without logos, claiming they are made with high-quality materials and skilled labour. Some suppliers even promise to cover import duties and offer free shipping.

One supplier claimed that a Birkin bag which retails for $34,000 (approximately ₹29 lakh) actually costs only $1,400 (around ₹1.2 lakh) to make. “The bag makers get a very low profit margin, while the majority is pocketed by the brands for their logos,” the supplier said.

Social media campaign amid trade tensions

The trend is emerging as a visible fallout of the ongoing trade tensions between the United States and China. Former US President Donald Trump had pushed American firms to move manufacturing back to the US. In response, Chinese manufacturers appear to be using social platforms to share behind-the-scenes footage of their production lines and cost breakdowns.

“The real cost of #Birkin bag and what you are really paying for,” read a post shared with a video explaining the price structure of a designer handbag.

Some posts have suggested that the products sold as “dupes” may in fact be originals without branding. “Yang dupe kau beli tu actually ori,” one user commented, referring to a popular belief that many knock-offs may originate from the same factories used by luxury brands.

Tariff war plays out online

The videos have sparked debate over whether the US can continue its trade war strategy effectively. “The gag is that even with paying the import tariff and shipping, it’s still way cheaper than buying the same products through American corporations. We are not winning this trade war lmao,” one user said on X.

Another video aimed to address the stereotype around “Made in China” products by showing the detailed manufacturing process, highlighting the skill and material quality involved.

China holds its position

Despite a 145 percent US tariff on Chinese goods, China has raised its own retaliatory duties to 125 percent and has not shown signs of backing down. Instead, Beijing is focusing on internal reforms and expanding its trade partnerships.

Chinese President Xi Jinping has called the US measures “unilateral bullying.” His ministers have echoed this sentiment, stating that China will not surrender to external pressure and will continue to “fight to the end.”