Companies

Shein seeks to reassure investors amid US policy changes

Feb 28, 2025 United States

The China-based fast fashion giant has reported that it is experiencing strong growth. The reassurance came after US President Donald Trump first announced the end of the minimis rule

The Trump administration’s reform announced the removal of a tax exemption that allowed US consumers to buy Chinese goods without paying duties on orders under 800 US dollars. This change would pose challenges for Shein’s pricing and supply chain strategy.

“As I am writing this note to you, despite the recent challenges, our growth remains strong, driven by our ability to offer a diverse selection of fashion and lifestyle products at consistently affordable prices”, Donald Tang, executive chairman of Shein, wrote to investors, according to Reuters.

He added that the company remains competitive thanks to “advancements in the supply chain and improved logistics, ensuring faster and more reliable deliveries”. However, the letter did not provide figures on the company’s current financial situation.

The news comes as Shein prepares to list on the London Stock Exchange. It has been reported that the group’s valuation could be revised downwards to around 50 billion US dollars, compared with the 60 billion US dollars originally expected. Some analysts are even speculating that it could fall further to around 30 billion US dollars.

Originally scheduled for the first half of 2025, the IPO is now expected to be delayed until the second half of the year, giving the company time to adjust. There is also uncertainty over how long this new tax policy will last, as Donald Trump has in the meantime temporarily reinstated the tariff exemption and tasked the Commerce Department with finding a suitable solution.

Image Credits: siila.com.mx

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