Fast-fashion giant Shein reported a net loss of $99 million in the first quarter of 2026, shifting from a $395 million profit during the same period last year due to new trade tariffs, financial filings revealed on July 27, 2026.
The Singapore-headquartered retailer cited the removal of the U. S.
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de minimis import duty exemption by the Trump administration as a primary factor hitting sales growth and increasing operating expenses ahead of its planned Hong Kong stock exchange debut.
U. S.
revenue for the company dropped 14.3% to $2.04 billion in the first quarter, down from $2.38 billion a year earlier.
Products originating from China and shipped directly to American consumers now face tax rates ranging from 10% to 87.5%, compared to previous rates of 0% to 62.5%.
Under the updated regulations, Shein is addressing the added import expenses through direct pricing modifications.
"In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs," Shein stated in the regulatory filing.
The company confirmed that cost adjustments would directly affect retail pricing structures across its platform.
"We expect to pass on the majority of the increased costs under our cost-plus pricing strategy," Shein stated in the prospectus.
Shein noted that policy changes regarding small-package exemptions altered its top-line performance across key foreign markets.
"The removal of the US de minimis exemption has had an adverse impact on our sales in the US and the overall growth of our net revenues," Shein stated in the filing.
