President Trump’s tariffs have been making headlines all over the world. Not only did his administration remove the “de minimis“ trade exemption for the United States’ closest allies, but it also did so for China. Then, they added up to an additional 145% tariff on all Chinese imports.
In retaliation, Chinese content creators and factory workers are exposing American brands that say they are made in the U.S. and how much it really costs to make coveted luxury goods.
What’s happening?
Over the last few weeks, TikTok has been flooded with videos from factory workers, owners, and other influencers showing how much it really costs to manufacture luxury brands.
A New York Post article shared a TikTok that broke down the pricing for how much it would cost to make a Hermès Birkin bag.
“Hermès only uses the leathers from the three top-level suppliers,” a TikToker said. “One piece of togo leather (enough for one bag) costs US$450.”
Other costs include Fil au Chinoise thread from France that costs $25 per luxury bag, metal “hardware” costs about $150, and the oil used to treat the material is $50.
Adding in zippers, lining, and labor provided by French artisans, the bag roughly costs $600 to make and is sold at $1,450 to the brand. The Birkin bag retails for $38,000, and Hermès recently announced a 10% price increase.
One AI-generated video also went viral on TikTok that showed Trump and Elon Musk working on a Nike factory floor. While it’s satire, it ignited a conversation in the comments. “How can they charge $500 for a bag that costs $30 to make here?” one user on IOL commented.
Why is brand inflation important?
It’s no secret that there is a lot of information kept from consumers about the production cycle of our goods. But seeing that the cost of luxury goods is not just marked up 100%-200% but roughly 2,600% is disrespectful to the consumer.
These videos have also revealed some falsehoods around marketing shared by iconic American brands that claim they are only made in the U.S. Factory workers have called out brands like Michael Kors, Ralph Lauren, Calvin Klein, Coach, and Levi’s for being disingenuous, per IOL.
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What’s being done about brand inflation?
American consumers are turning to true American-made brands and secondhand shopping to fight the increase in tariffs and overconsumption.
Every year 100 billion garments are produced while 92 million tonnes of textiles is shipped to landfills. If the support for fast fashion continues until 2030, it’s expected to hit 134 million tonnes a year.
Consider shopping secondhand to do your part in reducing the impact on the environment. You can also recycle your textiles with programs like Knickey and Trashie.
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