Fast fashion firm Shein to delay listing as tax-free loophole is closed

The fast-fashion company’s plans to IPO – initially slated for the first half of this year – were approved by the UK’s Financial Conduct Authority last month but await a signoff from regulators in China, where the company was founded. Shein declined to comment on its listing plans.

It is not alone. Tariff-induced market volatility has forced many other UK businesses to shift public offerings to later in the year and only five new IPOs were completed in the first quarter – a 74% fall year-on-year.

The government has been courting UK-bred firms in the hope they will list at home. Chief executives of fintech unicorns including Monzo, OakNorth, ClearScore and Revolut met the City minister on Tuesday.

Verisure, a provider of domestic alarm systems, is reportedly leaning towards a listing in Amsterdam, while one adviser to Revolut said it was “almost certain” the fintech would list in the US. Late last year Revolut’s CEO, Nikolay Storonsky, said a UK listing was “not rational” because of a lack of liquidity in the market and the expense of stamp duty. Revolut did not respond to requests for comment.

Despite the prospect of another UK tech darling crossing the Atlantic, the adviser said there was cause for cautious optimism in the IPO pipeline going into 2026 and beyond: “We know that the cycle out of private capital into public companies is coming. It was about to hit when Trump messed around with tariffs. It’s hard to float companies when the markets are this volatile and you can’t price properly. But it’s coming.”

Shein faces an acute challenge after Donald Trump’s decision to close the “de minimis” exemption – a loophole that allowed companies to send shipments below $800 into the US tax-free. Despite tariff cuts on Shein clothes made in China, a flat $100 fee per postal item remains in place.

A source with knowledge of the retailer’s business model said Shein and competitors are exploring rerouting supply chains via Turkey, Brazil and Vietnam, where the exemption still applies. They noted that this wouldn’t solve the problem of plans by the UK and EU to phase out the “de minimis” exemption on imports.

“Over time Shein will likely become more like ‘slower’ competitors,” says the source. “Manufacturing in many locations and cheap shipping in bulk. That will lead to planning and buying ahead of selling, which will lead to reductions in choice.”

Reshoring is one part of the challenge. The other is reputational. Despite the FCA greenlight and a hefty public affairs blitz, Shein can’t seem to shake accusations about forced labour in its supply chain. Labour MP Joshua Reynolds said his concerns are “as strong as ever”. He added that it looks “increasingly likely that Shein will list this year”.

Photograph by Jade Gao/AFP, Getty Images