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Who said products made in China have no design? Just as Chinese brands are coming into their own, US President Donald Trump is building a steep tariff wall. One consequence is that Americans will miss out on the latest innovations from the world’s biggest factory. Trump said on Wednesday that the US will raise the tariff on Chinese imports to 125%, effective immediately.
While Americans might still be able to buy apparel and housewares from the likes of Shein and Temu, affordable luxury brands from the world’s second-largest economy will probably stay away from the US market. Import taxes are now simply too high. It’s a pity.
Guochao, or “China chic,” is a trend that combines millennial design with traditional Chinese elements, but also showcases features that cater to the lifestyle of local consumers. It has earned fans worldwide with cars, fashion and fragrance brands, to name just a few. This concept has been around for a while, but has picked up pace after the Chinese exited pandemic-related lockdowns in late 2022.
Consumers discovered their country was suffering from economic long Covid, forcing many to tighten their wallets and become discerning shoppers. Consider the auto industry. Chinese electric-vehicle makers are redefining what it means to be a luxury car.
They focus on advanced infotainment features that are almost like an extension of living rooms. Xiaomi’s SU7 mimics Porsche Automobil Holding SE’s Taycan in power and braking, but includes AI that can help with parking and greet drivers with their favorite song. Premium brands are also changing the interiors, for instance paying attention to the layout of the back seat, where most business executives sit while driven around by chauffeurs.
Young Americans would have welcomed this concept. Unlike their parents, they don’t see driving a car as a symbol of independence. Rather, they are comfortable getting a lift from family members.
Wouldn’t it be much more fun going around town in a Chinese EV, often cheaper than a Tesla? Or how about fashion? Songmont bags have been spotted on the arms of influencers worldwide. They are crafted from soft leather, sport a quiet luxury look, and are very, very lightweight. To Summer, a fragrance label, promotes scents that smell like white magnolia flowers in Shanghai and cedar wood trees in the mountains that run through Tibet.
But these brands may just skip the US altogether. A Songmont bucket bag costs about $250, while a 30ml bottle of To Summer’s perfume starts at around $70. With Trump’s tariffs, they have no price advantage compared to Coach or Le Labo Fragrances.
Meanwhile, they have no brand recognition there. They may not want to take the business risk of entering a new market when American consumers are becoming more cautious. Two decades ago, Japan’s domestic brands blossomed after the nation’s real estate and stock markets went burst.
In 1998, Fast Retailing Co.’s Uniqlo sprung to prominence with a fleece launch priced at a fraction of Patagonia’s. Japanese clothing brands have been pushing out well-cut, easy-to-match looks.
And Americans have been shopping the minimalist designs at stores such as Uniqlo and Muji in part because tariffs have been low. The same dynamic is being played out in China right now. In an economic recession, local brands have had to improve their products to hold onto their customers.
But alas, thanks to Trump, Americans don’t get to take advantage. [Abridged] Courtesy Bloomberg/ Shuli Ren.
