News Pricer.lt

Shein’s £50bn London IPO threatened by Trump tariffs

Shein’s £50bn London IPO threatened by Trump tariffs

Shein’s planned £50bn London IPO could be at risk after US President Donald Trump moved to close a tax loophole that is crucial to the fast fashion retailer’s business model.

Over the weekend, Trump vowed to ditch the de minimis exemption for small packages worth under £645 shipped from Canada, China, and Mexico to the US, the Telegraph reported.

Currently, small packages sent directly to US home addresses are exempt from import taxes, which has allowed businesses like Shein to avoid paying customs duties by shipping small, low-value orders directly to customers in the US.

The new rules increase the possibility of far higher duty costs for the fast fashion giant, since most of its US sales rely on shipping small packages.

Related Story

The move calls into question whether Shein will be able to continue with its anticipated £50bn London float.

Investors anticipated to buy shares in the retailer upon its listing will want assurances over the reliability of its forecasts, which will become difficult to grant due to the uncertainty over the tax changes and potential sales impact.

The Chinese giant could be hit with hundreds of millions of dollars in additional import duties, according to the Telegraph.

In addition to the looming tariff changes, Shein’s IPO faces another obstacle.

Yesterday (3 February), campaigners launched a new attempt to block Shein’s proposed London listing over claims the online giant has benefited from the “proceeds of crime”.

Stop Uyghur Genocide initiated a judicial review process to block the fast fashion retailer’s planned float following concerns of alleged abuses in its supply chain.

Click here to sign up to Retail Gazette‘s free daily email newsletter

News source

Dalintis:
0 0 balsai
Straipsnio vertinimas
guest
0 Komentarai
Seniausi
Naujausi Daugiausiai įvertinti
Inline Feedbacks
Rodyti visus komentarus

Taip pat skaitykite: