A pint-sized Nordic elf with a devilish grin and sharp teeth is taking on the might of global trade wars—and winning.
The Labubu doll, a quirky collectible from China, is shrugging off President Donald Trump's hefty tariffs, proving that even in the chaos of economic battles, a gremlin-like plush toy can steal the show.
But how is this tiny sensation defying the odds, and what does it reveal about the broader US-China trade conflict?
Let's dive into the world of Labubu and uncover its secret to tariff-proof success.
Discover Labubu's Unstoppable Charm
Labubu, created by Hong Kong artist Kasing Lung and distributed by China-based Pop Mart, has become a global craze, especially among Gen Z.
These palm-sized plushies, often dangling from handbags or dressed in miniature Chanel-inspired outfits, generated £319 million ($428 million) of Pop Mart's £1.4 billion ($1.8 billion) revenue in 2024.
Despite Trump's tariffs on Chinese goods reaching up to 145% by 15 April 2025, Pop Mart's revenue outside China soared by 375.2% last year, with US sales skyrocketing nearly 900%
Fans like @osakibee, 'I need a matching Labubu with him, I swear', can't resist Labubu's quirky appeal, proudly attaching them to high-end accessories.
The dolls' allure lies in their blind-box model, buyers don't know which design they'll get, sparking a collecting frenzy akin to gambling, though China regulates sales to kids under 8 to curb addiction.
Navigate Tariffs with Market Agility
While Trump's trade war aims to curb Chinese imports, Labubu's success exposes cracks in the strategy. Pop Mart's rapid expansion, with bustling stores from Los Angeles to Bangkok, shows it's sidestepping economic barriers.
The company's knack for tapping new markets like South America, where sellers in Yiwu, China, now target buyers chanting 'Feliz Navidad,' highlights a pivot away from US reliance.
Meanwhile, knock-offs like 'lafufus' flood discount stores such as Miniso, keeping costs low for budget-conscious fans. This agility frustrates Trump's tariff mandate, which has sparked warnings of £1,000 ($1,343) annual cost hikes per US household.
Chinese exporters, defiant in the face of tariffs, tell the world, 'Other countries have money too!'—a mantra Labubu embodies.
Exploit Trade War Loopholes
Labubu's tariff-proof streak isn't just about charm; it's about exploiting economic shifts. China's retaliatory 84% tariffs on US goods and a whitelist exempting certain imports like semiconductors show Beijing's strategic counterplay.
Pop Mart capitalises on this, maintaining slim profit margins while flooding global markets with affordable, trendy toys. Unlike traditional industries facing supply chain 'implosion,' Labubu's compact size and low production costs dodge the worst of tariff impacts.
As US retailers like Walmart warn of empty shelves by Christmas 2025, Labubu's cult status ensures demand endures, with fans from New York to Paris queuing for new releases.
Labubu Laughs Last in Trade Tussle
In the high-stakes game of Trump's tariff mandate, Labubu is the unlikely victor, a gremlin toy outsmarting global trade barriers. Its success underscores a truth: consumer demand can outpace political posturing.
While tariffs threaten recession and price hikes, Labubu's meteoric rise shows China's ability to adapt, redirecting goods to eager markets worldwide.
For every tariff Trump imposes, a Labubu dangles on a handbag, proving that even in trade wars, small players with big appeal can thrive.
Let's watch this space, Labubu's grin might just outlast the economic storm.
