ESCAMBIA COUNTY, Fla. — China and the United States continue to butt heads on tariffs. President Donald Trump’s 90-day pause on tariffs does not apply to Chinese goods.
Now, some Chinese manufacturers are urging American consumers to “cheat the tariff” and buy high-end goods directly from their factories.
Chinese manufacturers are promising low prices, offering what appears to be luxury goods at a fraction of the price.
But a local economist says even if you buy directly from the factories, it’s likely you’ll still be impacted by tariffs.
“No matter the demographic, consumers are concerned about higher prices, rising inflation and getting less while paying more,” said Jonathan Gold, the National Retail Federation vice president of supply chain & customs policy.
Some Chinese factories are aware of the concerns of American consumers surrounding tariffs. Many of those factories are taking to TikTok and urging Americans to buy high-end products from brands like Louis Vuitton, Birkin and Nike directly from their factories.
“It’s gonna create huge problems,” said Dr. Rick Harper, professor of economics at the University of West Florida.
Some videos claim apparel, like leggings from Lululemon — which can cost upwards of $100 or more in the U.S. — only cost around $5 or $6 when you buy from China. Others are offering Hermès Birkin bags — made in France — which can cost tens of thousands of dollars in the U.S. for just $1,400 from a Chinese factory.
Harper says if you buy from the factory, it’s likely you’re paying for a fake.
“There’s a long history of people buying a Rolex watch from that vendor on the street in New York City and then getting home and finding that, well it’s not really a Rolex after all,” Harper said. “And so you’ll see that sort of thing, counterfeit style items.”
Even if you don’t mind shopping for a dupe, Harper says you can’t avoid the tariff. Imports from outside of the U.S. will have to go through customs.
“They’re going to be examining packages and you, as the purchaser, have to pay the duty. And if it’s gonna be 145% that’s a huge difference from the cost of the factory,” Harper said. ” And so there’s gonna be a great temptation to engage in illegal behavior but it’s not gonna end well for anybody.”
On top of that, Harper says this could open the door for scammers.
“What a nice business for some entrepreneur to pretend to be a Chinese manufacturer who has access to fashion items you could think of purses or other things that you might find attractive by in the internet,” Harper said.
Dr. Harper also discussed the lasting impacts of tariffs. Hear more about the tough reorganization the economy is in for and how the value of the dollar has been impacted here.
