Shein faces existential threat as tariffs hit low-price model, putting new focus on services

Discount retailer Shein disclosed in IPO documents that elimination of trade law exemptions has materially impacted its business performance, particularly in its largest markets. The company attributed a decline in U.S. revenue to tariff-related price increases implemented beginning in May 2025, with U.S. sales falling more than 3% between 2024 and 2025 and dropping 14% in the first quarter compared to the prior year.
Europe, which contributed 35% of Shein’s 2025 revenue, faces similar he