Shein swings to a loss as Trump tariffs hit sales
Summary
Shein reported a loss of $99 million in the first quarter due to slower sales after the U.S. removed a duty exemption on small imports. The company faces higher costs and delays partly because of new tariffs and global issues like the Iran war, and it is preparing to launch shares in Hong Kong soon.Key Facts
- Shein lost $99 million in the first quarter of this year, compared to a $395 million profit in the same period last year.
- The loss is linked to U.S. President Donald Trump ending a tariff exemption for small packages under $800.
- This exemption allowed cheap goods to enter the U.S. without extra taxes, benefiting online shopping sites like Shein.
- Shein plans to raise prices in the U.S. to offset some of the tariff costs.
- The company also experienced delays and higher costs due to the Iran war affecting some markets.
- Shein had 281 million active customers who made over one billion orders in the year ending March 2026.
- Shein received approval to list shares on the Hong Kong stock market after failing to list in New York and London.
- The U.S. government cited concerns over tariff evasion and illegal drug imports as reasons for ending the tariff exemption.
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