Shein plunges to £74m loss due to Trump tariff crackdown

Shein swung to a quarterly loss of £74 million after U.S. changes to import rules raised costs and weighed on sales in its biggest market. The company reported the loss for the first three months of 2026, compared with a £295 million profit in the same period a year earlier, based on financial information released ahead of a planned Hong Kong listing. Part of the deficit was driven by a one-off £245 million accounting charge tied to convertible preferred shares. Shein also warned that the removal of America’s “de minimis” exemption slowed growth and increased expenses, after the Trump administration ended the benefit for goods from China and Hong Kong in May 2025. U.S. revenue dropped 14.3% to about £1.53 billion, while operating margin fell to 2.9% from 3.9%. It is considering further U.S. price rises and faces additional scrutiny in Europe, where an EU charge equivalent to about £2.60 on low-value parcels began this month.