American shoppers flock to Chinese e-commerce apps for cheap purchases as homegrown apps threaten price spikes

American consumers are turning en masse to Chinese e-commerce apps in search of bargain goods, concerned prices on domestic platforms may rise due to US President Donald Trump’s tariffs. The fear-birthed online shopping spree has made apps like DHgate, Taobao, and Shein top download charts in the United States.

DHgate, a Chinese e-commerce platform known locally as Dunhuang, surged to the second position in Apple Inc.’s US App Store rankings, according to mobile analytics firm SensorTower. 

The app, affectionately dubbed “The Little Yellow App” by bargain-hunting shoppers, saw its popularity accelerate upwards after viral TikTok videos promoted low-cost luxury lookalikes it had on sale.

TikTok videos push American consumers into Chinese online stores

According to Bloomberg, the shared clips claim that high-end Western brands, such as Hermes and Louis Vuitton, source their goods from Chinese factories, and the same factories are now selling directly to consumers via platforms like DHgate. 

One video promoted a replica Hermes handbag, prompting viewers to “save money and get Birkins and Mini Kellys just in time for summer 2025.”

Tariffs turned out to be the best thing ever!

China is exposing ALL suppliers for the biggest brands!

Including, the iconic Hermès handbag, a quintessential accessory that epitomizes luxury and craftsmanship!: pic.twitter.com/sNffQ44OMA

— ChrisUniverse 🗽 (@ChrisUniverseB) April 15, 2025

DHgate listings show that over 10,000 pairs of imitation Lululemon yoga pants, normally priced at $98, were sold for just $13 each. Meanwhile, a knockoff Louis Vuitton pochette wallet, retailing for $1,490 in stores, was available for $3.24, with more than 100 units already sold.

500k Hermes bag is actually $5,100 from manufacturing factory in China pic.twitter.com/SrQ3gzVSl6

— Brittany Weber (@BrittanyWeberrr) April 14, 2025

The buying frenzy caused shares of CTS International Logistics Corp., which partners with DHgate, to shoot up by 10% on the Shanghai Stock Exchange Wednesday.

According to local news outlets, on April 11, DHgate issued an open letter to its merchants to introduce its “Tariff Escort Plan.” In response to US tariffs that had reached 125% at the time, the marketplace said it would assist sellers with subsidies, promotional traffic, and logistical support to stabilize business operations and maintain price competitiveness.

The platform, founded in 2004 by Wang Shutong, a former executive at Microsoft and Cisco, supports more than 2.6 million registered suppliers. It has over 30 million products listed and operates across 200 countries and regions. 

Wang, often referred to in local media as the “female Jack Ma,” also co-founded Joyo.com, one of China’s earliest e-commerce ventures, which Amazon later acquired.

Europe worried about Chinese goods on the EU market

In the East of the US, European leaders believe the indirect consequence of Trump’s tariffs is a market flocked by Chinese goods. If the US successfully restricts most goods from China, the Asian nation could begin offloading its industrial overcapacity onto Europe, threatening local industries and market stability.

Liana Fix, a fellow at the Council on Foreign Relations, called the situation “a tipping point for the continent.” 

“There is a general trend and a feeling in Europe that in these times, Europe has to stand up for itself and has to protect itself,” she said.

The European Commission, led by President Ursula von der Leyen, had promised to “engage constructively” with Beijing, but von der Leyen told reporters she was well aware of the risks posed by a flood of underpriced Chinese goods. 

“We cannot absorb global overcapacity nor will we accept dumping on our market,” she surmised, announcing the creation of a task force to monitor imports for signs of market dumping.

In the United Kingdom, domestic retailers also fear that goods previously destined for the US will now be redirected toward British shores. The British Retail Consortium (BRC) warned that a loophole for low-cost imports was closed when Trump slapped Chinese goods with a 145% tariff.

“Retailers are very concerned about the risk of some lower quality goods being rerouted from the US to Europe due to the tariffs,” said BRC chief executive Helen Dickinson.

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