Shein Group Ltd., the well-known fast fashion brand headquartered in Singapore, reported revenues of approximately 10 billion dollars during the first quarter of 2025. In the same period, net profits exceeded 400 million dollars, representing a 5% profit margin—one of the highest recorded in the company’s recent history. The reason behind these strong results: Donald Trump’s tariffs.

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This performance was driven by a surge in early purchases by U.S. consumers, who rushed to buy low-value products—Shein’s specialty—before the implementation of new tariffs. This, according to information reported by Bloomberg.

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Goodbye to de minimis: Trump puts pressure on Shein’s business model

Shein’s financial boom coincided with the announcement by U.S. President Donald Trump regarding the elimination of the de minimis rule, a customs policy that allowed tax-free imports of products valued at less than $800 USD. This exemption was essential for Shein’s business model, which relies on direct shipping of small parcels from Asia to U.S. consumers.

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A new executive order signed by Trump eliminated that exemption for all countries starting August 29, 2025, representing a major setback for Shein and other platforms that rely on this logistics strategy. As a result, sourcing from countries like Vietnam is no longer a viable alternative to avoid tariffs.

Is Shein publicly traded?

No. Despite its strong performance in the early months of the year, Shein has not released financial data for the second quarter, making it difficult to assess the immediate impact of the new tariffs. The company, which still operates privately, is not obligated to publish quarterly results.

Shein’s initial public offering (IPO) process is still ongoing. The company has attempted to list in the United States and London without success. Recently, it filed a draft prospectus in Hong Kong.

However, the operation still requires approval from Chinese regulators, and industry sources indicate that Shein may be forced to cut its valuation in half. In 2023, the company was valued at 66 billion dollars during a funding round.

Annual sales in 2024 surpassed 38 billion dollars

According to a report from the Financial Times, Shein recorded revenues of 38 billion dollars in 2024, although its net profit fell by nearly 40%, amounting to approximately 1 billion dollars. These figures reflect the growing pressure on the brand’s business model, whose profitability heavily depends on maintaining low logistical and fiscal costs.