Shein will reportedly push its blockbuster London listing back into the second half of this year after Donald Trump’s tax clampdown on parcels.
The Chinese fast fashion giant had been hoping to list its shares before Easter in what would be one of the UK’s biggest-ever listings.
But this is likely to be delayed after the US last week confirmed it would close a duty loophole, the Financial Times reported. Shein declined to comment.
Currently, retailers, including Shein, avoid US tariffs on parcels worth $800 (£645) or less.
Fast fashion: Shein’s clothes have been advertised by celebrities including Georgia Toffolo (pictured)
Experts reckon removing this will hit Shein’s profits and force it to increase prices in the US, which is its largest market.
The move has also reportedly caused Shein to consider slashing the value of its listing by billions, from £50billion to just over £40billion. The Government is facing pressure to axe a similar loophole, which allows parcels to be shipped directly to consumers with zero duty if the value of the parcels is less than £135.
Retailers, including High Street stalwart Primark, are furious about this. Shein, whose clothes have been advertised by celebrities including Georgia Toffolo, has been criticised by human rights campaigners and fashion industry chiefs.
Allegations over forced labour in its supply chain have cast a shadow over the proposed listing, which would be a major fillip for London’s beleaguered stock market.
And MPs have expressed concern to City regulators about a lack of transparency from the firm.
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