Shein said it fell to a quarterly loss after sales growth weakened following a change to US trade rules under President Donald Trump. The fast-fashion company said the removal of an import duty exemption for small packages hurt demand, adding pressure to one of its most important markets.
The update points to the impact that trade policy can have on online retailers built around shipping low-cost goods directly to shoppers. For Shein, the rule change appears to have made its products less competitive in the US, contributing to slower sales in the latest quarter.
The announcement also comes at a sensitive time for the company, which is preparing for a stock market debut in Hong Kong. A swing to a loss and weaker sales momentum are likely to draw close attention as investors assess the business ahead of any listing.
Shein is also facing a wider backdrop of uncertainty around tariffs and cross-border trade. That makes the company’s performance an important sign of how new import rules and broader trade tensions are affecting global fast-fashion groups.
