Fast-fashion giant Shein has quietly paused its plans for a high-profile flotation on the London Stock Exchange, following mounting geopolitical pressure from President Trump’s aggressive tariff regime and broader trade tensions with China.
The Chinese-founded, Singapore-based retailer has ended contracts with UK corporate communications firms Brunswick and FGS Global, who had been advising on the IPO, The Times has reported. The contracts expired this month and were not renewed, signalling a broader pullback on IPO preparations.
Shein had originally been targeting the third quarter of 2025 for its London listing, with a projected valuation of £50 billion. However, the company is now expected to delay the float until at least next year, as it grapples with the fallout from Trump’s trade clampdown.
A major blow to Shein’s business model came with the scrapping of the US de minimis exemption, which had previously allowed packages worth under $800 to be shipped directly from China to American consumers duty-free. The rule had enabled Shein to operate cross-border at scale, bypassing traditional import costs by sending low-value packages individually.
Adding to the disruption, Trump’s administration introduced a sweeping 145% tariff on Chinese goods, which has already led to price hikes for Shein customers and a reported 8% rise in womenswear prices. The resulting uncertainty sparked a wave of panic buying among shoppers trying to avoid further increases.
To mitigate the risks of over-reliance on China, Shein has begun diversifying its supply chain, increasing sourcing from countries like Turkey and Brazil, although a complete decoupling from Chinese production remains unlikely.
While Shein had received preliminary approval from the Financial Conduct Authority (FCA) for its IPO prospectus earlier this year, the FCA’s sign-off came prior to the implementation of Trump’s tariff regime. Significant changes to the company’s operating model and risk outlook could require Shein to update its prospectus and seek fresh regulatory approval in the UK.
Moreover, the company still lacks approval from China’s securities regulator, a major hurdle that could further delay or derail the listing.
Barclays and UBS had been appointed as bookrunners for the listing, while Goldman Sachs, JP Morgan, and Morgan Stanley were also engaged. It is unclear whether those banks remain involved in light of the IPO’s apparent pause.
Neither Shein nor its advisers have commented on the IPO status. However, with Trump’s trade policies upending supply chains and international expansion strategies, Shein’s delayed London debut may signal deeper challenges ahead for global firms navigating the political and economic aftershocks of a newly protectionist White House.
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Shein puts London IPO on hold amid Trump’s China tariff crackdown