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How much does it cost to manufacture a luxury handbag? The Chinese manufacturers' rebellion against Trump

Updated

Amid the trade war, Chinese manufacturers are revealing how and at what cost they produce these items for brands that later sell them for thousands of euros in the West

Hats are seen on the desk as President Donald Trump speaks with reporters.
Hats are seen on the desk as President Donald Trump speaks with reporters.AP

The 145% tariffs imposed by Trump on China have led the Asian country to counterattack with a smear campaign. Many suppliers use social media to invite users to buy directly from their factories.

To be convincing, they publish videos detailing how the supply chain of the most exclusive brands works and show how products from these brands come out of the same factories where cheaper but unknown brands are produced.

They claim that the handbags have the same quality as those in boutiques, the only difference being that they do not bear the recognized logo. "For this handbag, you pay over 30,000 euros, but its production cost is 1,300 euros," says a young worker regarding a Hermes Birkin.

The manufacturer makes a minimal profit margin, with the luxury brand keeping the majority of the profits.

In the videos, which are being removed from social media, they claim that even with paying import tariffs and shipping, it is more economical to buy directly from them than through American corporations or European companies based in the United States.

The controversy has even reached the famous caps with the slogan 'Make America Great Again' that have 'made in China' on their label.