Shein lost $99m (£74.1m) in the first three months of the year, against net income of $395m a year earlier, the fast-fashion group said in a filing lodged ahead of its planned stock market debut in Hong Kong.
The company, which has its headquarters in Singapore but was founded in China, said the removal of a US import duty exemption on low-value packages had cut into sales.
“The removal of the US de minimis exemption has had an adverse impact on our sales in the US and the overall growth of our net revenues,” Shein said in the filing.
The de minimis exemption had allowed goods valued at $800 or less to enter the United States without paying tariffs. US consumers used it to buy low-cost goods from online sellers including Shein and Temu.
President Donald Trump signed an executive order ending the exemption globally, which came into effect on 29 August 2025. It broadened an earlier presidential action targeting cheap products from China and Hong Kong to cover the rest of the world. The White House said the global exemption was being used to “evade tariffs and funnel deadly synthetic opioids” to the US.
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