Biggest Casualty of Trade War: Europe

Tuesday, May 06, 2025

The US and China's ongoing trade war has taken to TikTok and European fashion houses have found themselves sandwiched in the middle. A bag from a high end European fashion house such as Herms, Louis Vuitton or Prada is a pricey purchase, which can cost hundreds of thousands of euros.

Posted by ScottS at 01:00 AM | 1 COMMENT | permalink

In a video which gained more than six million views " before it was deleted and subsequently reposted by other accounts " Seng claimed that "80% of luxury bags in the world are made in China."

Seng alleged that "luxury brands take the almost finished bags back to their own country to do repackaging and logo installing."

According to Seng, this method is supposedly what makes "the bags appear as 'made in Italy' or 'made in France', you know those 'sophisticated' European countries."

Seng, as well as other TikTokers, claim they work for the original equipment manufacturers (OEM) for luxury brands " original equipment manufacturers make products which are subsequently sold by other companies under their own name.

Comments

Birkin bag re-sale market is getting crushed by up to 50% off. It is will be amazing if European luxury brands will be able to survive this - and this is literally all that is holding up the European economy. Combined, Hermes and LVMH have about ~$600B in market cap - and it will get crushed in the coming months and it is unlikely it will ever win back the Chinese market.

So, by the US taking down China - China lashes out by destroying the EU. Pretty funny actually.

#1 | Posted by ScottS at 2025-05-06 01:05 AM