Shein's Executive: "Growth Remains Strong" Despite Trump's Tariff Crackdown

LONDON (Reuters) - Fast-fashion retailer Shein's executive chairman Donald Tang has sought to reassure investors that the company's growth remains strong despite U.S. President Donald Trump's crackdown on low-value imports from China. In a letter to investors on Monday, Tang wrote, "As I am writing this note to you, despite the recent challenges, our growth remains strong, driven by our ability to offer a diverse selection of fashion and lifestyle products at consistently affordable prices."

The Trump administration's decision to end the de minimis duty-free provision for imports from China, which allowed retailers like Shein to ship packages worth less than $800 without tariffs, has raised concerns about the company's business model. Some analysts have suggested that Shein and rival PDD Holdings-owned Temu would have to raise prices to offset the increased costs.

However, Tang maintained a positive outlook, stating that Shein is investing in supply chain advancements to boost efficiency and responsiveness, as well as better logistics to ensure faster, more reliable deliveries. He also expressed support for de minimis reform, a stance he first made public in July 2023.

Tang's letter comes as Shein prepares for an initial public offering (IPO) in London, with reports suggesting that the company's valuation could be cut to around $50 billion. The end of de minimis, a rule that had allowed American shoppers to avoid paying customs on most Shein purchases, was widely expected but gave barely three days' notice for the complex international supply chains to adapt, causing delays to customers' orders as packages piled up at airports.

Trump ended up reinstating the duty-free provision temporarily and put the Commerce Department in charge of figuring out how to make the shift workable. It is not clear how long that will take.

In his letter, Tang wrote, "I have long advocated for de minimis reform that prioritizes American consumers--because at SHEIN, our focus is on customers, not customs policy." He added that Shein is committed to working with relevant consumer agencies and the European Commission to address any concerns regarding product safety and compliance.

As Shein investors and potential IPO participants weigh the implications of Trump's tariff crackdown, Tang's reassuring message serves as a reminder of the company's resilience and adaptability in the face of changing market conditions. With a strong focus on customer satisfaction and a commitment to continuous improvement, Shein appears well-positioned to navigate the challenges posed by the new tariff landscape and maintain its growth trajectory.