1st May 2025 11:30
(Alliance News) - Shein is considering shifting its production of clothes sold in the US to factories outside of China, as President Donald Trump's trade tariffs threaten the fast-fashion retailer's plan to list its shares in London, the Financial Times reported on Wednesday.
A tax exemption that allows small-value parcels into the US without paying duties will be closed this week, leaving Shein paying 120% tariffs on the cheap clothes it ships from China. As a result, Shein is considering diverting production for the US to other countries where it has manufacturing capacity, including Brazil and Turkey, the FT said, citing "two people with knowledge of the company's deliberations".
However, Shein would struggle to match the production capacity that it has in China, the newspaper noted, and such a move could attract the ire of the government in Beijing.
Last month, the UK Financial Conduct Authority reportedly gave Shein its preliminary approval for an initial public offering on the London Stock Exchange.
By Tom Waite, Alliance News editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.