Shein pauses London IPO as US tariffs and customs clamp down

Fast fashion giant Shein is believed to have halted plans for its London IPO as uncertainty around tariffs continues to heighten. The company is said to have not renewed contracts with two corporate communications firms that had been brought in to advise on the potential listing, according to The Times.

FGS Global and Brunswick had reportedly been appointed last year to oversee the process, but it is now understood that both firms have stepped down in the wake of US President Donald Trump tightening tariffs on Chinese imports. Tensions have only escalated upon the Administration’s decision to dismantle the de minimis tax exemption, which has been halted as of today, May 2.

The trade loophole had previously allowed small packages worth under 800 dollars to be shipped to the US from China and other regions without having to pay duties. Trump had dubbed the exemption as a threat to US businesses, and further claimed it was often used as a means to smuggle in illicit goods.

Shein’s IPO had initially been scheduled to launch in the first half of 2025 after already facing a number of obstacles in the form of legal challenges and investor uncertainty. By April, the company had obtained preliminary approval for the listing from the UK’s Financial Conduct Authority (FCA) and was thus waiting on backing from Chinese regulators.

This week, however, details began emerging of Shein’s hesitancy to move forward with the IPO. According to the Financial Times, the company was said to be mulling moving its production to countries outside of China to avoid higher tariffs. In a statement to the media outlet, an unnamed executive said that “no one can even start to think about the IPO” as the team first figures “out how to deal with the tariff situation”.

FashionUnited has contacted Shein and Brunswick with requests to comment. FGS Global has issued no comment on the matter.