Shein CEO Donald Tang spoke at the World Economic Forum in Davos, Switzerland, about how President Donald Trump’s trade policy could affect the apparel brand’s ultra-low prices.
Tang said affordability is key for Shein and that they can keep their prices low if Trump’s proposed tariffs are applied equally between countries. He explained that they offer good value for money.
Trump’s campaign tariffs and change of stance
During his campaign, Trump proposed tariffs of up to 60% on imports from China, where Shein mainly manufactures. He has since moderated his stance and suggested a 10% tariff.
When asked if Shein could still have low prices with tariffs, Tang did not say whether they would raise prices, but indicated that they could remain competitive if tariffs for China are not higher than for other regions.
Minimis, the loophole that has benefited Shein
Imports from China already face tariffs, but Shein has avoided them by shipping packages directly to consumers. This is under the de minimis provision that allows duty-free entry for packages under $800.
The Biden administration tried to limit de minimis for Chinese products, targeting Shein. Trump now appears to support that measure. It is unclear how it will change, but it indicates that Trump wants to end de minimis exemptions.
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Meteoric growth and frustrated IPO plans
Shein has grown rapidly in recent years and was planning a U.S. IPO, but ultimately ruled it out and opted for London in the face of anti-China sentiment. Tang avoided talking about the London IPO, but said that being a public company implies accountability, crucial to its growth.
Via CNBC
