Half of Dutch Ordering From Shein, Temu Less Frequently Since EU's Import Tariff
Shein said higher tariffs and the end of duty-free exemptions cut sales, with first-quarter revenue up just 2% and profit falling 39%.
- Shein raised U.S. prices to offset additional tariffs after President Donald Trump closed the de minimis exemption, dampening revenue ahead of its planned Hong Kong IPO.
- During the first quarter of 2026, Shein's sales plunged 14% as applicable tax rates climbed from 62.5% to 87.5%, squeezing profitability despite price increases.
- Europe, which generated 35% of revenue in 2025, faces similar headwinds after the European Union ended duty-free shipping for low-value packages in July.
- Shein seeks a valuation of $30 billion to $40 billion for its Hong Kong listing, far below its $100 billion peak, as Angela Lee, a professor at Columbia Business School, questions whether the brand can survive without low prices.
- To diversify beyond fast fashion, Shein is expanding its 'brand enablement services,' which lends supply chain infrastructure to designers and accounts for about 1% of revenue but is among its fastest-growing segments.
12 Articles
12 Articles
The new levy on parcels from online stores outside the European Union is beginning to produce visible effects in Belgium. Just a month after the introduction of the 3 euro tariff for certain imports, the number of parcels processed by the Belgian customs authorities has fallen significantly.
Shein Blames End of Exemptions for Low-Cost Imports for US Sales Slump
Shein, the global fast-fashion bargain behemoth, said the removal of a key trade law loophole has dragged down its U.S. sales and profits. President Donald Trump signed an executive order last year suspending duty-free de minimis treatment for low-value packages from China. Digital commerce firms worldwide have used this loophole to ship duty-free packages worth less than $800 to the United States. Under last summer’s One Big Beautiful Bill Act,…
Tariffs Are Putting Shein's Model In Peril As Ultra-Cheap Prices Stand Under Pressure
Shein shoppers could feel the tariff squeeze as the retailer raises prices to offset higher import costs. With U.S. sales already falling and Europe introducing similar rules, the company is looking beyond cheap fashion for its next phase of growth.
Half of Dutch ordering from Shein, Temu less frequently since EU's import tariff
The import tariff the European Union implemented on cheaper packages from outside the EU in July seems to be having the intended effect in the Netherlands. Nearly half of Dutch people (46 percent) are ordering less from Chinese webshops like Temu, Shein, and AliExpress since the tariff was implemented in July, RTL Nieuws found in a survey of its Nieuwspanel.
Prices on fast fashion platforms are rising and the difference is already felt by consumers. Specialists say there are deeper reasons for the increase.
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