Shein has reported a loss in the first quarter of the year due to a slowdown in sales, which the company attributes to the removal of the exemption from customs duties on small packages by US President Donald Trump:
The company, headquartered in Singapore but founded in China, stated that it incurred a loss of $99 million in the first quarter compared to revenue of $395 million during the same period last year:
Shein's announcement comes as the company prepares for a potential listing on the Hong Kong stock exchange:
“In response to the increase in tariffs and taxes, we are considering options, including raising our prices in the US market to offset some of the additional costs,” Shein stated:
The company also noted that the war in Iran has negatively impacted demand, increased costs, and caused supply delays in some markets:
The financial figures for the first quarter also partially include a paper loss of $328 million due to accounting changes related to special investor shares:
According to the company's data, as of the end of March 2026, Shein had 281 million active customers, representing an increase of more than 16% compared to the previous year:
The executive order signed by Trump, which came into effect on August 29, 2025, expanded previous restrictions to include not only China and Hong Kong but also small packages imported from other countries:
At the same time, the European Union imposed a €3 customs duty on low-value online trade imports at the beginning of July:
