Chinese fast-fashion giant Shein is said to look for ways to restructure its US business, since the uncertainty regarding tariffs continues to increase to foreign imports.
According to the British daily Financial Times (FT), which refers to two people familiar with the company’s considerations, it is considered, among other things, to shift production for the US market to countries outside China. In addition to China, Shein also has production facilities in countries such as Brazil and Turkey. However, it is unlikely that these companies will reach the required size, according to the media company, which could lead to a significant reduction in the offer in the United States. Other sources of the FT stated that no decisions about a US structure have been made at the board level. Shein had previously explained that there were no plans to shift its supply chain capacities from China.
The message comes at a time when Shein is preparing for the effects of closing the DEMINIMIS rule-a tax exemption for low-cost imports-which will come into force this week and will lead to US tariffs of 120 percent for the clothing company. These effects could bring the already delayed IPO in London, which was originally planned for the first half of the year, into a difficult situation.
Fashionunited asked Shein to comment.
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