Shopify Inc. projected sales in the current quarter that just met expectations, suggesting steep tariffs on goods from China present a challenge. The shares slumped.

The shares fell as much 8.5% in early trading Thursday in New York.

The Canadian e-commerce company said it expects revenue growth for the quarter ending in June to be in the mid-twenties, compared with a year earlier. Analysts were looking for 23% growth.

First-quarter sales were $2.36 billion, more than the $2.34 billion analysts were expecting.

Investors are struggling to determine how the trade war will affect Shopify, which sells software used by e-commerce businesses. Many of those businesses source goods from China, which faces the steepest tariffs.

Shopify will also be affected by the closing this month of a tariff loophole called “de minimis,” which let shipments from China of $800 or less enter the US duty-free. Shopify’s cross-border business represented 14% of gross merchandise volume in the fourth quarter, Chief Financial Officer Jeff Hoffmeister said in March at an industry conference.