NextFin news, Shein Group Ltd., a fast-growing online fashion retailer, experienced a significant decline in its US sales in September 2025 following the Trump administration's decision to end the tariff exemption for small shipments, known as the de minimis policy, on August 29, 2025.
According to data from Bloomberg Second Measure, which tracks anonymous US shopper transactions, Shein’s observed sales in the US fell approximately 8% compared to the same period in the previous year. This decline marked the second-worst monthly sales performance for Shein in the past three years.
The de minimis policy had allowed small shipments to enter the US without tariffs, facilitating Shein’s rapid expansion by keeping costs low for consumers. The White House’s termination of this exemption aimed to address trade and tariff enforcement but has directly impacted retailers relying on small-package imports.
Shein operates a major distribution center in Whitestown, Indiana, which had supported its US market growth by enabling efficient delivery and inventory management. However, the removal of the tariff exemption has increased import costs, leading to higher prices or reduced margins for the company.
The policy change reflects broader US trade enforcement efforts initiated during the Trump administration, targeting imports from countries including China, where many of Shein’s products are manufactured. The tariff adjustments are part of ongoing measures to protect domestic industries and address trade imbalances.
Industry analysts note that the end of the de minimis exemption has also affected other e-commerce retailers that depend on small shipments, potentially reshaping the competitive landscape in the US retail market.
Shein has not publicly commented on the sales decline or its strategic response to the tariff changes as of October 10, 2025.
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