Fast-fashion retailer Shein is likely to delay its London stock market debut until the second half of 2024, following Donald Trump's move to end tariff exemptions on low-cost Chinese imports to the US.

The Singapore-headquartered company had previously indicated to investors that a London listing could happen as early as Easter, but these plans have been disrupted by the former president's announcement to close the "de minimis" import rule, according to people familiar with the discussions.

The valuation for the initial public offering (IPO) is now expected to be cut to around $50bn, nearly 25 per cent lower than its $66bn valuation during its last funding round in 2023.

The retailer, which filed confidential papers with UK regulators in June last year, is still awaiting regulatory approval in both the UK and China. The company would also need a special waiver from the UK Financial Conduct Authority if it plans to list less than 10 per cent of its shares.

Analysts at RBC Capital Markets warned that the removal of the de minimis exemption, which currently allows duty-free imports on goods valued under $800, poses a significant threat to Shein's business model and could force price increases. According to a US congressional report, Shein and its rival Temu account for more than 30 per cent of US shipments under these exemptions.

In response to the tariff changes, Shein is reportedly expanding its production base in Vietnam, offering Chinese suppliers temporary incentives including up to a 30 per cent increase in procurement prices to facilitate the shift in production outside China.

The company originally targeted New York for its IPO but moved focus to London after facing resistance from US regulators. While Shein has never publicly confirmed its IPO timeline, the listing would provide a significant boost to London's struggling capital markets.

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