Singapore: Shein has reported a significant financial downturn as the fast-fashion company faces a $99 million loss in the first quarter, a stark contrast to its $395 million net income during the same period last year. This decline comes after the removal of an import duty exemption on small packages by former US President Donald Trump, which has notably affected Shein's sales. According to TRTworld.com, the elimination of the de minimis exemption, which had allowed goods valued at $800 or less to enter the US without tariffs, has had a detrimental impact on Shein's revenue. The order, effective from August 29, 2025, expanded an earlier action targeting low-cost products from China and Hong Kong. This change, along with the broader US-China tariff wars, has created significant challenges for Shein, prompting the company to consider raising prices in the US market to mitigate increased costs. The company, headquartered in Singapore but originally founded in China, is also navigating the complexities of a po tential stock market debut in Hong Kong. Although Shein has received approval from the China Securities Regulatory Commission for a Hong Kong share sale, details regarding the size, timing, and pricing of the initial public offering remain undisclosed. The approval follows unsuccessful attempts to list in New York and London. The report highlights additional factors contributing to Shein's first-quarter loss, including a paper loss of $328 million due to an accounting change for special investor shares. These shares, which can be converted into ordinary stock, have fluctuating values that could be impacted before the company's public listing. Despite the financial setbacks, Shein's customer base has grown, with 281 million active customers recorded by the end of March 2026, a 16% increase from the previous year. The company also reported over one billion orders during this period. Compounding these challenges, Shein noted that the ongoing Iran conflict has affected demand, increased operational costs, and led to delivery delays in several markets. The European Union's recent levy on low-value e-commerce imports, aimed at addressing perceived unfair competition from China, further complicates Shein's global operations.