Chinese fast-fashion giant Shein is reassessing its US operations and contemplating a delay in its planned London stock market debut, as escalating US tariffs on Chinese imports threaten its business model, a report in the Financial Times claims.
The Trump administration’s recent decision to revoke the “de minimis” exemption, which previously allowed low-cost goods under $800 to enter the US without tariffs, has imposed duties as high as 120% on many Chinese products.
This policy shift has significantly impacted Shein, which relies heavily on shipping inexpensive apparel directly from China to American consumers. The US market accounts for approximately one-third of the fast-fashion giant’s annual revenue.
In response, Shein is exploring options to mitigate the impact of these tariffs. One strategy under consideration, according to insiders, involves relocating the production chain for the US market to countries outside of China.
However, such a move could strain relations with Chinese authorities and presents some difficult logistical challenges, given Shein’s current manufacturing infrastructure is predominantly based in China.
These operational uncertainties have cast doubt on Shein’s anticipated initial public offering (IPO) in London, which had received approval from UK financial regulators in April 2025.
While the company has not officially postponed the IPO, an anonymous executive told the Financial Times that the company is “focused on figuring out how to deal with the tariff situation at the moment,” before it can “even start” to think about its upcoming offering in London.
Shein’s predicament underscores the broader ramifications of shifting trade policies on global e-commerce players, particularly those with supply chains deeply integrated with China.
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