Fast-fashion giant Shein Group is urgently exploring how to restructure its US business, according to the Financial Times, as punitive tariffs imposed by the Trump administration threaten to derail both its sales and plans for a London stock market listing.
The closure of the “de minimis” exemption, which allowed duty-free imports on parcels under $800, will expose Shein’s cheap Chinese-made clothing to 120% tariffs in its biggest market.
Executives are considering shifting some production to Brazil or India, though neither country can match the scale of Shein’s vast Chinese supply chain.
China, meanwhile, is pressuring exporters to stay put. If US sales decline sharply, Shein’s planned IPO could be pushed back.
Despite this, insiders are reported by the FT as saying the company remains financially stable.