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GistPadi > Blog > Gist & Entertainment > TikTok to Tariffs: The Obscure Chinese App US Shoppers Just Found
Gist & Entertainment

TikTok to Tariffs: The Obscure Chinese App US Shoppers Just Found

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Last updated: April 22, 2025 7:51 pm
admin 4 months ago
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TikTok to Tariffs: The Obscure Chinese App US Shoppers Just Found
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A surge of TikTok videos is pointing U.S. shoppers to a new destination for low-cost goods: DHgate, a Chinese wholesale platform that’s quietly gone viral amid rising concerns over import tariffs and price hikes.

These videos — often featuring popular products like yoga pants, tech accessories, and kitchen tools — hint that shoppers can find goods at a fraction of market price. Most link directly to DHgate, which has become a go-to for bargain hunters looking to stock up before new duties hit.

As more shoppers in the US scrambled to find cheaper alternatives ahead of looming import tariffs, by mid-April, DHgate had rocketed to the top from No. 352 to No. 2 on U.S. app charts in just four days, ranking just behind ChatGPT. 

The surge turned the nearly 20-year-old Chinese wholesale platform — long known mostly to small importers and resellers — into an overnight favorite among American consumers.

It began with TikTok creators promoting low-cost lookalikes of luxury goods, linking directly to DHgate in videos where subtle captions hinted that luxury products could be found for a fraction of the price.

Another viral post claimed a Hermès bag retailing for $38,000 costs only $600 to produce. As more creators joined in, traffic surged, propelling DHgate from a wholesale marketplace into the mainstream.

According to DHgate’s official channel on Douyin, China’s version of TikTok, more than 3,000 American wholesalers have been placing orders daily since mid-April. And the platform’s average daily gross merchandise value jumped from $15 million at the end of March to around $40 million between April 12 and 15.

Unlike Chinese e-commerce giants Temu and SHEIN, which focus on direct-to-consumer sales, DHgate was built as a digital wholesale marketplace to connect Chinese manufacturers directly with overseas retailers and small business buyers. For years, it remained largely under the radar for everyday consumers, serving as a backend supply hub rather than a storefront.

Most sellers on the platform focus on categories like consumer electronics, fashion, and home goods, offering everything from cellphone accessories and toys to apparel, bags, and small kitchen appliances.

But almost overnight, DHgate flipped from a wholesale backend to a frontline player, as thousands of everyday shoppers flooded the site in search of pre-tariff deals.

Starting May 2, the U.S. will eliminate de minimis eligibility for Chinese-origin goods under $800 — a move expected to drive up prices on thousands of small parcels shipped to American buyers.

Days ahead of the change, DHgate launched what it called a “Tariff Escort Plan,” offering subsidies, discounted shipping, and extra platform traffic to help sellers offset the impact. It also introduced a “Stock & Save Sale,” encouraging American consumers to bulk-buy before the new duties take effect.

But not everyone is convinced the boom will last. Some sellers worry the current wave of overseas traffic is being driven by individual consumers, while DHgate remains fundamentally a B2B platform. Others point to high commission fees that make low-value orders hard to sustain.

“If I make a $100 sale, DHgate takes $12.50 — AliExpress only takes $8,” said one seller in an interview with domestic media. A screenshot she provided shows DHgate charges 12.5% on orders under $300, and 6% above that.

The seller, who had previously left DHgate due to low traffic and high fees, reapplied on April 16 amid the sudden surge in overseas orders. But she remains cautious. “If I don’t get enough volume, the costs will be too high, and there won’t be much left to earn,” she said.

Editor: Apurva.

(Header image: VCG)

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