Shein pauses London IPO, explores US restructuring amid tariff threats

Shein, the fast-fashion retailer, has paused preparations for its London IPO as it grapples with the impact of new U.S. tariffs on Chinese imports and the closure of the 'de minimis' tax exemption, which previously allowed duty-free imports on parcels under $800. These changes expose Shein's U.S. sales—comprising about a third of its revenue—to tariffs as high as 120-124%, forcing the company to hike prices for American consumers and cut back on advertising. The company is urgently considering a major restructuring of its U.S. operations, including potentially shifting production to countries like Brazil or India, though these alternatives cannot match the scale of its Chinese supply chain. The uncertainty around U.S. trade policy has taken priority over IPO preparations, with executives indicating that resolving these tariff challenges is essential before moving forward with a public listing. Despite these headwinds, Shein remains financially stable for now, but its future plans hinge on how it adapts to the evolving trade landscape.