Trump's 'Tariff Bomb'... China’s Shein Faces Cloud Over London Listing

Shein Reports $8.5 Billion in US Sales Last Year
General Tariffs May End 'De Minimis Exemption'
Shein and Temu Face Unavoidable Impact... IPO Prospects Uncertain

Yonhap News

The tariff threats from the Donald Trump administration have cast a shadow over the London Stock Exchange listing of Chinese fast fashion company Shein.

According to a report by the UK daily The Telegraph on the 4th (local time), there are doubts in the investment industry about whether Shein can continue to pursue its London Stock Exchange listing plan despite the Trump administration's tariff measures.

Shein is currently pursuing an initial public offering (IPO) in the UK. If listed on the London Stock Exchange, the company's valuation is expected to be around 50 billion pounds (approximately 90 trillion won). This would be the largest IPO on the London Stock Exchange this year.

The Trump administration has announced general tariff measures against China and others. Accordingly, the 'de minimis exemption,' which exempts tariffs on goods imported by individuals into the US valued under 80 billion dollars (approximately 115 million won), will no longer be applied.

If the de minimis exemption disappears, Chinese e-commerce companies like Shein and Temu could suffer significant setbacks in their growth in the US market. In fact, it is estimated that last year Shein and Temu shipped nearly 600,000 packages under 800 dollars to individuals in the US.

According to GlobalData, Shein achieved sales of 8.5 billion dollars (12.4 trillion won) in the US last year. This accounts for 28% of its global sales.

Neil Saunders of GlobalData pointed out that if the de minimis exemption benefit disappears, "(For Shein) it could be a very big problem" and "it could worsen investor sentiment."

This content was produced with the assistance of AI translation services.