Tariffs imposed by the Trump administration will not eject fast-fashion juggernaut Shein from the US market, its executive chairman, Donald Tang, has told AFP.
Shein says US tariffs won’t slow fast-fashion surge. – Shein
The head of the online platform, which has faced scrutiny over its environmental footprint and allegations of human rights violations, also insisted that the company does not use forced labor.
Customers not affected
“We’re not focusing on customs policy,” Tang said about the new US import levies during a visit to France this week.
“We will find a way to deliver the goods,” he added, saying that Shein’s “business model” had seen the company through other global trade upsets like the coronavirus pandemic.
This time, however, China is directly in Washington’s crosshairs, with 20% additional tariffs levied on imported products.
The Trump administration has also questioned whether imported packages worth less than $800 will continue to enjoy duty-free status.
Shein—a firm founded in China but now headquartered in Singapore—and Temu have taken advantage of that practice for years to send tens of billions of dollars worth of products into the US from their network of Chinese factories.
Tang said that whatever happens, “we will do our best to make sure the customers’ interest and experience are not affected”—without detailing any specifics.
No forced labor
Like other major players in the textile sector, Shein has faced regular allegations of exploiting members of the Uighur minority in the cotton fields and factories of the western Chinese province of Xinjiang.
Tang told AFP that the policy on forced labor is zero tolerance. We don’t tolerate it at all, no questions asked.”
He added that the company had a code of conduct “totally, 100% aligned with the International Labour Organization Convention” that it required suppliers to sign.
Once deals are in place, “we have internationally renowned auditors come into the factories with unannounced visits,” Tang said.
David Hachfeld of the campaign group Public Eye, which has published an investigation into Shein, said the group’s measures were insufficient.
“In manufacturing, 75 hours a week was typical for most workers,” Hachfeld said, with “one and a half free days per month.”
Amnesty International has also called for Shein to be more transparent.
The campaign group has argued that any company operating in Xinjiang should set up human rights checks.
“If Shein has not undertaken this crucial step, it should pause its operations in Xinjiang,” Amnesty emailed AFP.
“Conversely, if the company is confident it has eliminated such risks, it should publicly disclose how this has been verified.”
Market flotation
Many investors expect Shein to float on a significant global stock market sometime this year, with London as the most likely venue.
But Tang did not give away any hints about the plans—beyond saying that a listing would reinforce trust.
“We wanted to embrace the universal mechanism for accountability and transparency, to have transparency as a requirement, not optionality,” he told AFP, hoping to stoke “public trust, which is crucial for our long-term growth.”
In January, the head of the British Parliament’s Business and Trade Committee said he and other members were “horrified” by Shein’s lack of transparency about where its products come from.
Tang said that the company has since responded to MPs’ questions.
The brand recently announced it will invest 200 million euros ($220 million) in European circular economy and recycling projects to polish its image.
“We have been meeting different companies in Paris and other cities in France and talking to the technology leaders” in the sector, Tang said—without naming the prospective partners.
Shein will likely face a hard sell regarding European environmental groups.
Friends of the Earth calculated in 2023 that Shein’s operations—which, on average, add around 7,200 new items for sale daily—emit “between 15,000 and 20,000 tonnes of carbon dioxide” every 24 hours.
The European Union and individual countries, including France, are already weighing regulations to limit waste from fast-fashion giants.
