Following the US 'de minimis' Repeal, Shein's IPO will be Postponed Until the Second Half

Nitin Konde, Varun Bhardwaj

14 Feb 2025 — 2 min read

Shein Delays IPO to H2 After US 'De Minimis' Repeal

A renowned media house reported on 14 February that Donald Trump's decision to repeal the so-called "de minimis" criteria is likely to delay fast-fashion company Shein's plans to float on the UK stock exchange until the second half of this year. According to reports last month, Shein planned to go public in London in the first half of this year, provided it received approval from Chinese and UK regulators. The Trump administration's announcement that it would eliminate the de minimis tariff exemption in the US, an import regulation that has assisted Shein in maintaining cheap costs, has cast doubt on the company's future.

Trump’s Opening Salvo

Analysts and industry experts had previously warned that the elimination of the exemption might affect Shein's profitability and raise product costs in the US, which is its largest market.

According to a media outlet that cited persons familiar with the talks, the fast-fashion retailer had previously informed investors that a London listing might take place as early as this Easter. In what he described as an "opening salvo" in a conflict between the two biggest economies in the world, Trump imposed an additional 10% tariff on China, which included the removal of de minimis. According to a 2023 study by the US congressional committee on China, Shein and rival Temu likely accounted for over 30% of all parcels transported to the US daily under the de minimis rule. Shipments under $800 were excluded from import taxes under the proposal.

According to several media reports last week, Shein was planning to reduce its valuation in a possible listing to about $50 billion, which is about a quarter less than the company's 2023 fundraising estimate of $66 billion, due to mounting challenges.

Shein Return to India

Nearly five years after the fast-fashion giant's app was blocked in India due to rising diplomatic tensions between India and its neighbour, China, Isha and Mukesh Ambani's Reliance Retail has successfully reintroduced Shein in India. Shein has returned to one of Asia's biggest retail markets with the recently released Shein India Fast Fashion app, which was created under a license agreement with Reliance.

Reliance's control over operations and data, with all consumer information retained in India, is one of the strict requirements attached to this agreement. The action also represents a change of strategy for Reliance, which aims to expand its online presence by providing Shein's well-liked, reasonably priced clothing on a completely localised platform.

Nearly five years after its app was banned in India due to diplomatic concerns between China and India, Reliance Retail has formally restored its presence in the country by launching a new app to sell fashionwear from China's Shein. According to sources, the app, Shein India Fast Fashion, was secretly released on Saturday morning; however, Reliance has not yet released an official statement.