Shein reports a $99 million quarterly loss as the administration's trade policies impact sales in its primary market.
Shein reported a $99 million loss in the first quarter of 2026, a significant decline from the $395 million profit recorded during the same period in 2025. The administration announced the removal of the de minimis exemption, a trade loophole that previously allowed goods valued at $800 or less to enter the United States without tariffs. This policy change, which specifically targeted cheap products from China and Hong Kong, has had an adverse impact on sales in the United States, Shein's largest market. In the filing, Shein stated that U.S. revenue fell 14.3% to $2.04 billion. To offset the increased costs, the company plans to increase prices in the U.S. market. The company also noted that while the Iran war has affected demand and shipping routes, it is not expected to have a material adverse impact on the overall business. Shein is currently preparing for its stock market debut in Hong Kong, following failed attempts to list in New York and London.