What: Shein delays London IPO to second half of 2025 amid US de minimis rule changes and reduced valuation expectations of USD 50 billion.

Why it is important: This development marks a critical juncture where trade policy directly impacts retail valuations, potentially setting new precedents for how cross-border e-commerce companies are valued in public markets.

Fast-fashion giant Shein's plans to list on the London Stock Exchange face a significant delay following Donald Trump's decision to close the de minimis duty exemption in the United States. The company, which initially targeted a first-half 2025 listing pending UK and Chinese regulatory approvals, must now navigate the implications of losing a crucial trade provision that helped maintain its competitive pricing strategy. The removal of the exemption, which previously allowed duty-free shipments under USD 800, particularly impacts Shein's largest market, the United States. Industry analysts suggest this regulatory change could significantly affect the company's profitability and force price increases.

The development coincides with a substantial reduction in Shein's potential listing valuation to approximately USD 50 billion, nearly 25% below its 2023 fundraising value of USD 66 billion. This adjustment reflects mounting headwinds, including Trump's broader imposition of additional tariffs on Chinese imports as part of an escalating economic confrontation between the world's largest economies.

IADS Notes: The postponement of Shein's London IPO reflects broader challenges facing fast-fashion retailers in early 2025. As noted in February 2025, the company's valuation expectations have already been cut to USD 50 billion, marking a significant decrease from its 2023 valuation. This adjustment comes amid intensifying regulatory pressures, exemplified by the EU's comprehensive reforms requiring stricter platform accountability. The competitive landscape has also evolved significantly, with Amazon's entry into direct-from-China shipping in July 2024 signaling a shift in how traditional retailers approach the fast-fashion market. These developments align with Forrester's October 2024 prediction of plummeting growth rates for ultra-fast fashion retailers, suggesting that the combination of regulatory challenges and market saturation is fundamentally reshaping the sector's growth prospects.

Shein’s IPO to be delayed to second-half after US ‘de minimis’ repeal