Shein delays London IPO due to strict approach from Trump

Shein's initial public offering (IPO) in London is facing yet more delays. The fast-fashion giant initially aimed to list on the London Stock Exchange around Easter 2025 (approximately April 20). However, according to the Financial Times (FT), the Chinese company will reportedly miss this target due to "Trump's crackdown on low-value packages".

The US government, under President Trump, plans to abolish the de minimis rule. This means that goods valued under 800 dollars will no longer be exempt from import duties. This has significant implications for Shein, which ships low-cost packages directly from Chinese factories.

These changes could increase tariffs on Shein's products and disrupt the company's pricing strategy, making it more difficult to maintain its ultra-low prices, reports Dutch newspaper Financieele Dagblad. The media outlet stated that, according to insiders, it is "likely" that the company will postpone its IPO to the second half of 2025 as it grapples with the potential impact of the new trade regulations.

Shein's London IPO has been facing delays for some time due to ongoing geopolitical tensions. The company filed confidential documents with the UK's Financial Conduct Authority (FCA) in June 2024, but approval is proceeding slower than anticipated, as Reuters previously reported.

Furthermore, experts at FT and Reuters had already predicted that Trump's de minimis policy would impact Shein’s profitability. Additionally, Shein is awaiting regulatory approvals from both British and Chinese authorities before it can list on the London Stock Exchange.