In response to pressure from Donald Trump’s tariff war, SHEIN has severed ties with two corporate communications agencies in the UK who were brought in to support its London IPO. The Times reports that the fast fashion behemoth has not extended its agreements with Brunswick and FGS Global.
Both companies have resigned, despite the fact that it was thought that they were hired to provide advice regarding SHEIN’s planned London IPO last year.
It follows pressure on SHEIN when the US decided to eliminate the de minimis tax exemption, which allowed small items under $800 to be delivered duty-free from China, Canada, and Mexico to the US.
It has also been troubled since the US president imposed a 145 per cent tariff on imports from China, where a significant portion of the retailer’s clothing is made.
Although the Financial Conduct Authority recently gave the chain’s initial public offering (IPO) prospectus preliminary clearance, this approval was given prior to the implementation of Trump’s tariff regime.
This implied that the retailer would have had to seek new regulatory approval and revise its prospectus with any significant modifications. Additionally, SHEIN had not received consent from Chinese authorities.
It follows UK investor groups’ criticism of SHEIN’s IPO last month as a “race to the bottom.”
The float may jeopardise the UK’s standing as a top listing destination, according to a senior managers’ trade organisation that includes Aviva Investors, Schroders, and M&G.
SHEIN followed through on its earlier warning that new tariffs will drive up operating costs by raising prices for US consumers earlier this week.
