Fast-fashion retailer Shein has shifted to a quarterly loss, citing a slowdown in sales following President Donald Trump’s decision to revoke an import duty exemption for small packages. The company, headquartered in Singapore but founded in China, recorded a $99 million loss for the first three months of the year, a sharp contrast to the $395 million net income reported during the same period in 2025.
This financial disclosure arrives as the business prepares for a prospective stock market launch in Hong Kong. While the filing confirms the company is moving forward with an IPO, it omits specific details regarding pricing or a firm timeline. To mitigate the financial pressure caused by new taxes, Shein indicated it may raise prices for US consumers.
The company also noted that conflict in Iran has disrupted logistics and dampened demand. Furthermore, the first-quarter results were affected by a $328 million paper loss linked to accounting adjustments for specific investor shares. Despite these headwinds, Shein’s active customer base grew by more than 16% to 281 million, with users placing over one billion orders.
The downturn is largely attributed to an executive order signed by President Trump, which ended the ‘de minimis’ loophole. This provision previously allowed shipments valued under $800 to enter the US duty-free. The White House stated this exemption was being exploited to bypass tariffs and transport illicit substances. Additionally, the European Union recently introduced a €3 levy on low-value e-commerce imports to address concerns regarding competitive practices from China.
