Shein, the fast-fashion retail giant, has suspended its plans for a London stock market debut, having ended partnerships with two UK corporate communications firms, Brunswick and FGS Global, according to reports. This decision comes in the wake of pressures stemming from President Trump’s ongoing tariff battle against China.

The contracts with both communications firms, which were engaged last year to assist with Shein’s anticipated public offering, have not been renewed as of this month.

This strategic pause signifies a broader reevaluation of Shein’s plans for an initial public offering (IPO) amidst increasing scrutiny and challenges posed by proposed tariffs targeting Chinese imports.

Currently valued at £50 billion, Shein initially aimed to launch its IPO in the third quarter of the financial year. However, it has reportedly delayed these preparations until at least next year following the subsequent repercussions from U.S. trade policies.

The retail company, now based in Singapore, is feeling the impact of a recent U.S. policy change that eliminated a tax exemption allowing small shipments from China, Canada, and Mexico, valued below $800, to enter the U.S. duty-free. This regulation previously facilitated cross-border shipping for companies like Shein and Temu, which relied on this for efficient delivery.

Compounding these issues, Trump’s administration has imposed a 145 percent tariff on imports from China, a country where Shein sources a significant portion of its apparel.

In light of these developments, consumers are reportedly engaging in panic buying, making larger orders in anticipation of rising prices. Reports indicate that prices for Shein’s women’s clothing have increased by approximately 8 percent since the introduction of the tariffs.

Shein is also proactively adjusting its supply chain, with plans to source some production outside of China to mitigate potential geopolitical risks. Although a complete shift away from Chinese manufacturing is deemed unlikely, the company is exploring options in countries like Turkey and Brazil.

Previously, Shein’s IPO prospectus had received preliminary approval from the Financial Conduct Authority (FCA). However, this approval was granted before the introduction of the latest tariffs, suggesting that Shein may need to revise its prospectus to reflect any significant changes and secure renewed approval from the UK regulatory body.

Furthermore, Shein still requires authorization from regulators in China, presenting another significant barrier to its IPO plans.

Barclays and UBS Group have been designated as lead bookrunners for the potential float, with advisory support from major U.S. investment banks including Goldman Sachs, JP Morgan, and Morgan Stanley, though their ongoing involvement has not been confirmed.

Representatives from Shein, FGS Global, and Brunswick have refrained from commenting on the situation.