The insight: Discounts and promotions drive TikTok Shop purchases, according to a YouGov survey. That could hinder adoption as tariffs drive up seller costs—and consequently prices.

Behind the stat: 52% of TikTok Shop customers cited deals as the top reason for making a purchase on the platform. That’s more than four times the number swayed by influencer or celebrity recommendations, suggesting that the price has to be right before would-be shoppers pull the trigger.

The big picture: Unfortunately for TikTok Shop—and parent company ByteDance, which has high expectations for its US ecommerce business—that has become a much harder feat because of the one-two punch of high tariffs and the end of the de minimis exemption.

• For example, electronics company Wyze, which has sold roughly 750,000 products on the marketplace, posted on X late last month that it had to pay around $255,000 in tariffs on a $167,000 shipment from China.
• Even with the 90-day respite, sellers—including those based in China and other markets dependent on Chinese goods—are on the hook to pay 30% in tariffs, or 54% if they stick with the de minimis route.
• The surge in costs is deterring merchants from joining the platform, with seller onboarding down YoY in the US, sources told Business Insider. Concerns about a potential ban are also a factor.

Tariffs are also likely to have a profound effect on demand for TikTok Shop’s assortment of mostly discretionary products.

• Nearly 3 in 10 shoppers say higher prices would immediately affect their buying habits on Chinese ecommerce platforms, per an April Omnisend survey.
• There are already indications that uncertainty is weighing on buyer behavior: Sales from foreign sellers have fallen since March, with daily sales down as much as 20% to 25% MoM, per BI.

Our take: TikTok’s promise as an ecommerce platform has been severely curtailed by the tariffs, which are harming its ability to bring merchants onto its platform as well as threatening discretionary spending.

Go further: Read our FAQ: How the US-China Trade War is Affecting TikTok Shop, Temu, and Shein.