Sheen is headed for bankruptcy as Donald Trump’s trade legislation hits sales.

Schein said sales slumped after U.S. President Donald Trump removed tariffs on small packages, leading to a loss for the quarter.

It is currently on hold amid uncertainty over US-China tariff wars.

The Singapore-headquartered but China-based fast fashion company said it lost $99m (£74.1m) in the first three months of the year, down from net income of $395m a year ago.

The announcement is part of the company’s preparations ahead of its stock market launch in Hong Kong, although the filing did not provide any details on the size, timing or price of the proposed initial public offering (IPO).

“In response to the increased taxes and duties, we are pursuing several options, including raising prices in the U.S. market to offset some of the increased costs,” Shin said in the filing.

The company says the Iran war has hit demand, increased costs and caused shipping delays in some markets.

The first-quarter figures also partly reflected a $328 million paper loss due to accounting changes in special investor shares. The shares may later be converted into common stock, and their price may change prior to listing.

According to the presentation, By the end of March 2026, Shin had 281 million active customers – an increase of more than 16% from a year ago – who had placed more than one billion orders in total.

On July 10, China’s securities regulator Commission (CSRC) gave Shane permission to sell shares in Hong Kong after unsuccessful attempts to list in New York and London.

The Hong Kong share listing is expected to take place in the coming months.

The figures show the effect An executive order signed by Trump to end international tariff freedoms They were served by low-cost American consumers.

In the year That order, which took effect on Aug. 29, 2025, expanded the rest of the presidential crackdown targeting cheap goods from China and Hong Kong.

A so-called de minimis tariff allows goods valued at $800 or less to enter the U.S. without paying any tariffs. American consumers depended on the freedom to buy cheap goods from online shopping sites like Shein and Temu.

The White House says the global exemption will be used to “evade tariffs and transfer deadly synthetic opioids into the US.”

“The US de minimis exemption has had a negative impact on our sales in the US and the growth of our total net income,” Shein said in the filing.

At the beginning of July The EU imposed a tax of €3 (£2.56; $3.42). On low-cost e-commerce revenue.

The move is aimed at curbing what the trade group says is unfair competition from China.