SHEIN's London IPO in jeopardy as Trump tariffs hit it hard
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It has been reported that Chinese e-commerce company SHEIN is likely to postpone its initial public offering (IPO), which had been approved by UK authorities. SHEIN is restructuring its supply chain in anticipation of prolonged punitive tariffs imposed by the Trump administration, but it is almost certain that its London listing, which was expected to take place in the first half of 2025, will be postponed.
Shein explores US restructuring as tariffs threaten to derail London IPO
https://www.ft.com/content/37b30f64-f9e8-4c1a-ad50-23e7c61880a7
Shein IPO on the line, as it ponders tariff-driven restructuring
https://www.axios.com/2025/04/30/shein-ipo-tariffs
Chinese e-commerce exports to US plummet by 65% in face of tariffs | Trump tariffs | The Guardian
https://www.theguardian.com/us-news/2025/apr/30/chinese-e-commerce-exports-plummet-in-face-of-tariffs-despite-rise-in-sales-to-eu
The US market is an important market for SHEIN, accounting for about one-third of its annual revenue. However, the end of the 'de minimis' tax exemption that has supported the company's fast fashion business means that cheap clothing delivered directly to American customers from Chinese warehouses will be subject to a 120% tariff, forcing SHEIN to make a major review of its business.
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One solution Shein is considering is moving production for the US market overseas, according to two sources cited by the Financial Times, although the company has previously said it has no plans to move its supply chain functions out of China.
In addition, even if measures such as moving manufacturing for the U.S. market to countries other than China are taken, a delay in the London IPO is considered unavoidable. SHEIN received approval for an IPO from the UK financial authorities in April 2025, but SHEIN also needs approval from Chinese authorities to go public.
But moving its supply chain outside of China would anger Chinese authorities, and Shein's manufacturing base outside China is still inadequate, and it could lose US sales, at least in the short term, which could discourage investor interest.
'Our entire focus right now is trying to figure out how to respond to the tariffs,' said a Shein executive, who spoke on condition of anonymity. 'We can't even think about an IPO until we have a clear solution.'
by Focal Foto
SHEIN isn't the only company affected by US tariffs: China's official figures show that total e-commerce shipments to the US fell 65% in the first three months of 2025.
SHEIN's competitor Temu has been passing on the tariffs in their entirety to consumers, with the average price of 100 products across two categories, 'toys and games' and 'beauty and health,' increasing by more than 40% in two weeks.
For example, a summer dress that sold on Temu for $18.47 would jump to $44.68 after $26.21 in tax was added, while a children's swimsuit would nearly triple in price to $31.12 after $18.68 in tax was added to $12.44.
In addition, Amazon, a US company, is also affected by tariffs through taxes on importers, which account for a large portion of its sales. In April 2025, Amazon reportedly immediately discontinued its efforts to display the increase in tariffs after receiving protests from the Trump administration.
Amazon had planned to include the tariff increase in the price, but bowed to pressure and withdrew the plan - GIGAZINE
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