Shein pauses the IPO in London due to US tariffs

It is believed that the fast-fashion giant Shein has initially put its plans for an IPO in London on hold due to the increasing uncertainty regarding the US tariffs. As the newspaper The Times reports, the company is said to have not extended the contracts with two communication companies that had been hired for advice in connection with the potential IPO.

FGS Global and Brunswick are said to have been commissioned to look after the process last year. However, it is assumed that both companies have resigned to Chinese imports by US President Donald Trump after tightening tariffs. The government’s decision has tightened the government’s decision to abolish the de-minimis tax exemption.

The trade loophole had previously made it possible to send small packages worth less than $ 800 without customs fees from China and other regions to the USA. Trump had referred to the liberation as a threat to US companies and claimed that it was often used as a means of smuggling illegal goods.

Shein’s IPO was originally supposed to take place in the first half of 2025 after the company was already confronted with a number of obstacles in the form of legal disputes and investor uncertainty. In April, the company received the provisional approval for the IPO from the British Financial Conduct Authority (FCA) and was therefore waiting for the support of the Chinese supervisory authorities.

This week, however, details about the hesitation of Shein appeared to advance the IPO. According to the Financial Times, the company is said to consider moving its production to countries outside of China in order to avoid higher tariffs. In an explanation to the media company, an unmanageable manager said that “nobody can even think of an IPO”, since the team must first find out “how to deal with the customs situation”.

Fashionunited asked Shein and Brunswick for a statement. FGS Global has not commented on the matter.