Shein, the fast-fashion retailer, faces new challenges as President Donald Trump’s recent policy changes shake up the e-commerce landscape. The company’s executive chairman, Donald Tang, has sought to reassure investors that Shein’s growth remains strong despite the termination of the duty-free treatment for low-value imports from China. In a letter to investors on Monday, Tang addressed concerns about the potential impact on Shein’s business model.
The company, known for its affordable fashion items, is committed to maintaining its competitive edge in the US market by continuing to offer a diverse selection of products at low prices. Tang highlighted Shein’s ongoing investments in supply chain advancements and logistics improvements to boost efficiency and ensure faster, more reliable deliveries.
Shein reassures investors amid challenges
However, the company did not provide specific growth figures or financial information. The sudden end of the de minimis provision, which allowed American shoppers to avoid paying customs duties on most Shein purchases, has led to delays and a backlog of packages at airports. Trump later reinstated the duty-free provision temporarily, tasking the Commerce Department with finding a workable solution.
Tang expressed support for de minimis reform, stating, “I have long advocated for de minimis reform that prioritizes American consumers — because at Shein, our focus is on customers, not customs policy.”
Earlier this month, sources with knowledge of the matter reported that Shein is set to cut its valuation for the planned London IPO to around US$50 billion. The company’s investors include Sequoia Capital, General Atlantic, Declaration Partners, Brookfield, and Claure Group. As Shein navigates these new challenges, the company remains focused on maintaining its growth and competitive edge in the fast-paced world of e-commerce fashion.
