Shein has parted ways with two UK corporate communications firms brought in to aid its London IPO, following pressure from Donald Trump’s tariff war.
The fast fashion giant has not renewed contracts with FGS Global and Brunswick, according to The Times.
Although the firms were believed to have been brought in last year to advise over Shein’s proposed London IPO, both companies have now stepped down.
It comes after Shein has faced pressure following the US’s decision to axe de minimis tax exemption, which enabling small packages worth under $800 to be shipped from China, Canada and Mexico to the US without having to pay duties.
Additionally, it has faced issues since the US president brought in a 145% tariff on imports from China, where a large amount of the retailer’s garments are produced.
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While the prospectus for the chain’s IPO was recently granted preliminary approval from the Financial Conduct Authority, the approval came before Trump’s tariff regime was introduced.
This meant the retailer would most likely have been required to update its prospectus with any notable changes and seek new approval from the regulator. Shein had also not been given approval from China’s regulators.
FGS Global, Brunswick, and Shein declined to comment on the matter.
It comes after Shein’s IPO was slammed as a “race to the bottom” by UK investor groups last month.
A top managers’ trade group, including Aviva Investors, Schroders and M&G, said the float could threaten the UK’s status as a premier listing destination.
Earlier this week, Shein raised prices for US shoppers, following through on its previous warning that new tariffs would push operating costs higher.
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