Shein swings to $99m loss as Trump tariffs hit sales

What the report says

BBC World News reported that Shein posted a $99 million quarterly loss after sales growth slowed following U.S. President Donald Trump’s removal of an import-duty exemption for low-value parcels. The fast-fashion company, headquartered in Singapore and founded in China, had recorded net income of $395 million in the same period a year earlier. The update was disclosed as Shein prepares for a planned stock market debut in Hong Kong.

According to the BBC, Shein said higher duties and taxes were weighing on its U.S. business and overall revenue growth. In its filing, the company said it was considering measures including raising U.S. prices to recover part of the increased cost. The results also included a $328 million paper loss linked to an accounting change for special investor shares that can later convert into ordinary stock.

The BBC reported that Shein’s filing did not specify the size, timing or pricing of the proposed initial public offering. China’s securities regulator approved a Hong Kong share sale on 10 July, after earlier attempts to list in New York and London did not proceed. The company reported 281 million active customers in the year to the end of March 2026, up more than 16%, and more than one billion orders.

The development matters because Shein’s business model has relied heavily on cross-border, low-cost e-commerce shipments. The U.S. de minimis exemption had allowed goods worth $800 or less to enter tariff-free, benefiting platforms such as Shein and Temu. BBC also noted broader trade uncertainty, an EU levy on low-value e-commerce imports, and Shein’s statement that the Iran war affected demand, costs and delivery times in some markets.