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Chinese Manufacturers Use TikTok to Promote Direct Sales, Undercutting US Tariffs

A surge of viral TikTok videos from Chinese influencers highlights discounted luxury goods, raising concerns about counterfeits and escalating US-China trade tensions.

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In this photo illustration, the social media application logo, TikTok is displayed on the screen of an iPhone on an American flag background on August 3, 2020 in Arlington, Virginia.
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Overview

  • Chinese influencers on TikTok are urging American consumers to bypass tariffs by purchasing directly from Chinese factories, claiming significant cost savings on luxury goods.
  • Viral videos allege that Chinese factories produce items for brands like Lululemon and Louis Vuitton, though both companies deny these claims and suggest counterfeit goods are involved.
  • The videos, some professionally produced, appear to be part of a coordinated campaign to challenge US tariffs and influence consumer behavior.
  • Recent adjustments in US tariff policies, including selective exemptions, have not deterred the digital push by Chinese suppliers, which continues to gain traction.
  • Experts describe this phenomenon as part of a broader geopolitical struggle, intertwining intellectual property disputes, trade conflicts, and the strategic use of social media platforms like TikTok.