Bus stop advertising for Chinese fashion company Shein in London, England, May 4, 2025.
Mike Kemp | In Pictures | Getty Images
Discount retailer Shein had long argued trade law loopholes weren’t the reason for its success. But now that those exemptions are gone, its once meteoric growth has stalled in the U.S. and Europe, posing a threat ahead of its Hong Kong initial public offering.Â
In documents released in connection with its upcoming IPO, Shein blamed a slowdown in U.S. sales on its decision to raise prices to offset the cost of new tariffs as it warned a similar dynamic could come in Europe, its largest market.
“Since May 2025, we have begun passing on the majority of the additional tariff costs by increasing our prices in the U.S. market,” Shein said in the filing. “Since May 2025, we observed a negative impact on our net revenues from the U.S. market in the remainder of 2025.”Â
Between 2024 and 2025, revenue in the U.S….
