Tariffs Are Putting Shein’s Model In Peril As Ultra-Cheap Prices Stand Under Pressure

Shein’s ultra-low-price business model is coming under increasing pressure from higher tariffs. The fast-fashion retailer is reporting a sharp drop in U.S. sales and warning that recently introduced European trade rules could have a similar impact in its largest market. The company raised prices in the U.S. last year to offset additional tariff costs following changes to the de minimis exemption, which previously allowed low-value packages to enter the country without duties. U.S. revenue fell more than 3% between 2024 and 2025 before dropping 14% year over year in the first quarter of 2026, according to documents filed in connection…