Shein's UK Listing Plans Postponed Amidst US Policy Shifts
London, UK - March 10, 2023
Fast-fashion giant Shein's plans for a UK stock market listing are reportedly being delayed to the second half of the year, following the Trump administration's decision to close the "de minimis" duty exemption in the United States.
Shein, which had initially aimed for a London listing in the first half of 2023, is facing increased uncertainty surrounding its business prospects after the US government announced the removal of the exemption.
Industry experts and analysts believe the elimination of the exemption may impact Shein's profitability and lead to higher product prices in the US, its largest market. Sources cited by the Financial Times indicate that Shein had previously discussed a possible listing as early as Easter.
Shein has yet to respond to Reuters' request for comment. The de minimis exemption was part of the Trump administration's broader tariffs on China, which are seen as part of escalating trade tensions between the two countries.
Shein and its Chinese rival Temu reportedly accounted for over 30% of all packages shipped to the US under the de minimis provision, according to a 2023 report by the US congressional committee on China. The exemption previously exempted shipments below $800 from import duties.
In addition to the US policy changes, Shein is also reportedly considering reducing its valuation for a potential listing to around $50 billion, reflecting the current market headwinds.