Is TikTok Becoming a Smuggling Channel? Chinese Companies Spark Controversy by Avoiding Tariffs for Sales

Recently, CNN reported that a large number of Chinese factories have been promoting luxury goods to American users on TikTok. In the videos, individuals claiming to be “brand manufacturers” encourage users to bypass official brands and directly place orders with China. Some content seems to try to avoid the up to 145% tariffs imposed by the US on Chinese products.

One user named Wang Sen, in a video, stood in front of a wall full of Burberry bags, claiming to be the manufacturer who can provide “unbelievable prices.” However, this video was soon removed by TikTok.

At the same time, Chinese e-commerce platforms known for selling counterfeit luxury goods, such as “DHgate,” have risen to second place in the US Apple Store rankings, and “Taobao” has jumped to seventh place. Many accounts claiming to supply Lululemon and Chanel products attract orders through TikTok content.

However, the “factory backgrounds” of these accounts have faced widespread skepticism.

Citing experts, CNN mentioned that legitimate suppliers usually have confidentiality agreements and would not directly sell products themselves. These products are likely counterfeit or high imitation goods.

Lululemon responded, stating, “We have not collaborated with any factory mentioned in the video.” The list of suppliers they published for 2025 also does not include the names of these Chinese factories.

Another account named LunaSourcingChina filmed two factories in Yiwu, saying yoga pants cost $5 there while selling for $98 elsewhere. Lululemon also denied any relationship with these two factories.

Experts point out that the “direct ordering” model bypasses brand owners and tariff regulations in most cases. After the US announced the elimination of tariff exemptions for packages under $800 starting from May 2, such models may face challenges.

There are also concerns about environmental issues. These small packages shipped globally have excessive plastic packaging, high carbon emissions in transportation, poor product quality, and are more likely to be discarded.

Currently, such videos on TikTok continue to gain views. How far will this “gray market trend” on this social platform go? We will keep a close eye on it.

What is your perspective on this “direct factory ordering” trend on TikTok?