The fast-fashion behemoth SHEIN is frantically rolling out emergency measures to rescue its upcoming London stock market debut, which despite winning Financial Conduct Authority (FCA) approval in April, now teeters on increasingly shaky ground. Originally Chinese but now Singapore-headquartered, the retail phenomenon faces brutal investor scrutiny over its true worth while navigating the choppy waters of US President Donald Trump‘s hefty new tariffs.
Planned US Restructuring
In response to the Trump administration’s trade offensive, SHEIN has been forced back to the drawing board on its American operations. According to report from Reuters, the retail giant’s comfortable ride ended abruptly when Washington axed the ‘de minimis’ tax loophole that had allowed its budget-friendly products to slip into American homes tariff-free. Now staring down eye-watering tariffs up to 120% on shipments from China and Hong Kong, the company finds itself in uncharted territory.
SHEIN is exploring shifting part of its production to countries like Brazil and Turkey to mitigate the impact. However, these locations have limited capacity compared to its extensive Chinese supply chain. The Chinese government has also discouraged such relocation initiatives. Despite these challenges, SHEIN remains financially stable due to its asset-light model and has raised prices on some US products in anticipation of the tariffs.
Ceasing Digital Ads
It has also been reported that SHEIN has effectively ceased its US Google Shopping ad campaigns, with its share of daily impressions dropping to 0% as of April 26, 2025, according to data from marketing agency Tinuiti.
In addition to halting Google Shopping ads, Shein reduced its overall US digital ad spend by 19% across platforms like Meta, TikTok, and Pinterest during the first two weeks of April. This strategic pullback reflects the company’s efforts to mitigate rising operational expenses amid shifting trade policies.
A History of Unsuccessful IPOs
In 2023, Shein confidentially filed for a US IPO, reportedly targeting a valuation of up to £67.72 billion ($90 billion). However, political tensions between Washington and Beijing and intense regulatory scrutiny over SHEIN’s supply chain practices, including allegations of forced labour, slowed progress.
By late 2024, Shein shifted its focus to a London IPO, seeking to bypass US regulatory hurdles. But fresh challenges emerged: mounting trade tensions, the Biden administration’s push to eliminate the “de minimis” import tax exemption, and European regulatory concerns over sustainability and labour practices.
Documented Unfair Industry Practices
Despite explosive global growth, SHEIN has faced mounting controversies that have tarnished its reputation. Among the most serious are allegations of forced labour linked to its supply chain. A 2022 report by Swiss watchdog Public Eye found that SHEIN’s suppliers often required employees to work up to 75 hours a week under poor conditions, raising concerns about labour rights abuses.
Furthermore, US lawmakers have pressured Shein to prove its products are free from forced labour in Xinjiang province in China, with bipartisan calls for investigation under the Uyghur Forced Labor Prevention Act.
Internal Turbulence
SHEIN has also faced internal turbulence, with rounds of layoffs affecting hundreds of staff across regions, particularly in 2023 and 2024, as part of cost-cutting and restructuring efforts to prepare for a possible IPO.
Additionally, SHEIN has long been dogged by accusations of plagiarism. Independent designers and major brands have accused the company of copying designs without permission, often flooding the market with low-cost replicas. In some cases, designers have taken legal action, highlighting the company’s ongoing struggles with intellectual property ethics.
A Critical ‘Juncture’ for SHEIN?
Looking ahead, SHEIN faces a critical juncture as it prepares for its highly anticipated London IPO. The company must navigate a delicate balancing act between meeting regulatory demands, improving supply chain transparency, and addressing sustainability concerns.
Securing approval from Chinese regulators, particularly the China Securities Regulatory Commission (CSRC), remains a key hurdle. At the same time, SHEIN must reassure investors and the public that it is actively improving labour conditions and reducing its environmental footprint — issues that have drawn intense scrutiny from Western regulators and consumer watchdogs.