Luxury fashion finds itself in the crosshairs of the US-China trade war

In the latest twist to the ongoing US-China trade war, fashion has found itself caught in the crosshairs. With the US proposing heightened tariffs on imports, China appears to be retaliating in unexpected ways—including what some are calling a digital “exposé” on the luxury industry. Viral TikTok videos from Chinese factory workers and content creators claim that many high-end European brands have long relied on manufacturing partnerships in China. While these posts offer a rare glimpse inside production lines, they raise more questions than answers: Is this a retaliatory tactic? An appeal for transparency? Or something else entirely?

According to this Firstpost article, "the Chinese regime and industry appears to be following a two-pronged approach". It says, "Firstly, Chinese manufacturers, with Beijing’s go-ahead, appear to be ready to flood the international market with counterfeit luxury products to hit at US and other Western luxury brands. Chinese influencers are urging customers to purchase goods, such as luxury bags and other accessories, directly from Chinese manufacturers at a tiny fraction of the cost that Western brands sell these products."

But at the heart of the conversation lies a fundamental tension between perception and provenance. The idea of luxury has always been rooted in a certain kind of prestige: centuries-old ateliers, heritage materials, and artisanal craftsmanship passed down through generations. For many, it’s not just about a product—it’s about the story it tells, the logo it bears, and the identity it represents. In this context, paying a premium is often as much about belonging to a legacy as it is about the physical object itself. However, according to The New York Post this might be the beginning of a larger change that the luxury goods market might see. "With rising production costs and shifting consumer perceptions, brands may now need to reassess their strategies entirely."

But if a piece is assembled in one part of the world and finished in another, what does “Made in” truly signify? And when the materials and hands behind a luxury item are sourced globally, does that dilute the essence of luxury, or does it simply reflect the realities of a modern supply chain?

To be fair, China remains one of the largest and most skilled manufacturers in the world, with a vast infrastructure and textile heritage that has cemented its role as an indispensable part of the global fashion ecosystem. While the country has long been criticised for its counterfeit markets, is that reputation entirely fair? After all, many luxury houses—Coach, Burberry, Armani, and even Prada—have, either discreetly or openly, relied on Chinese production for certain categories, from accessories to ready-to-wear, trusting them with some of their most iconic designs. And in most cases, quality control still rests firmly with the luxury brand, regardless of where the product is assembled. So, if luxury is still crafted to a high standard—even in China—does its origin dilute its value, or does it simply reflect the globalised nature of modern fashion?

Luxury, after all, is not just about origin. It’s about intention, consistency, and a brand’s ability to deliver something that feels timeless and rare. Still, as the digital curtain lifts—albeit selectively—it may be time to ask: What are we really paying for—the craftsmanship, the story, or the brand identity?

Perhaps the real power now lies in being informed—and choosing what luxury means to you.

Lead image: Getty Images

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