Royal Bank of Canada (RBC) has lowered its price target for Shopify Inc., warning that growing tariff pressures could weigh heavily on the e-commerce giant’s growth prospects over the coming quarters.

In a note to investors, RBC analysts said that while Shopify remains a strong player in the global online retail market, macroeconomic challenges, including new and existing tariffs, are likely to slow the company’s expansion.

“Tariff headwinds and broader supply chain disruptions are expected to limit Shopify’s ability to maintain its previous growth trajectory over the next several quarters,” the analyst note said.

RBC cut its 12-month price target for Shopify from US$85 to US$75 per share, reflecting a more cautious outlook amid tightening economic conditions.

Analysts pointed out that higher costs for goods and materials, combined with slower consumer spending, are likely to create additional hurdles for Shopify merchants.

“Many small and medium-sized businesses that rely on Shopify’s platform will face margin pressures, which in turn could affect Shopify’s revenue growth,” the note added.

Shopify’s stock, which had already faced volatility over the past year, fell modestly in early trading following the release of RBC’s updated forecast.

Tariffs on goods imported from key manufacturing hubs, particularly in Asia, are a major concern for e-commerce operators whose business models depend on global sourcing.

RBC still praised Shopify’s commitment to innovation and new product launches, noting that its recent moves into AI-driven commerce and international markets could help offset some of the near-term challenges.

Nevertheless, the bank emphasized that external economic factors — not company missteps — are primarily behind the downgraded outlook.

Shopify has not publicly commented on the revised price target or RBC’s report.

Investors are advised to monitor broader trade developments closely, as further escalation in tariffs could deepen the impact on Shopify and the wider e-commerce sector.

The next earnings report from Shopify will be closely watched for any signs of how the company is managing these external pressures.