A View of a Shein Pop-up Store at a Mall in Singapore on April 4, 2024.
Shein’s Ultracheap Clothes to Remain Affordable: CEO
Shein’s executive chairman, Donald Tang, stated that the company’s ultracheap clothes can remain affordable as long as proposed tariffs from President Donald Trump are “applied equally.” In an interview at the World Economic Forum in Davos, Switzerland, Tang said, “Affordability is a big anchor. It’s the whole package of it, it’s a value for [your] money.”
Tang did not address whether the company would raise prices if tariffs take effect, but suggested that it would still be able to remain competitive as long as China does not see higher tariffs than other regions. Trump has proposed tariffs as high as 60% on imports from China, but has since softened his stance, suggesting a 10% tariff instead.
Shein has been able to avoid tariffs by shipping its packages directly to consumers, using a trade law known as the de minimis provision. This allows packages valued under $800 to enter the US with less scrutiny and without paying import duties and processing fees. However, the Biden administration has announced new steps to curb the use of this provision, and Trump has endorsed this policy.