Tag: fast fashion

Shein Lost Market Share in the U.S. Apparel Retail Market in 2025 Amid Trade Tensions

Latest Data from Euromonitor shows that while the United States remained Shein’s largest apparel sales market in 2025, the value of sales declined by 4.5%, affected by factors such as higher tariffs on Chinese products, the elimination of the “de minimis” rules, and young U.S. consumers’ growing concern about sustainability. Based on the value of sales, Shein’s market share in the U.S. also dropped from 1.8% in 2024 to 1.7% in 2025, the first time since 2021.

Shein’s business outlook in the U.S. is expected to remain challenging in 2026 due to ongoing high tariffs affecting imports from China, tighter regulations and enforcement on cross-border e-commerce shipping, and consumers’ increasing demand for sustainable apparel products and supply chain transparency.

Amid headwinds in the US, Shein is diversifying its sales markets in the rest of the world. For example, Shein achieved more apparel retail sales in key EU markets in 2025, including the UK (up 4.2%), France (up 26.7%), Germany (up 31%), Italy (up 19.7%), and Spain (up 26.6%). Likewise, Shein’s sales in Brazil increased by over 698% between 2021 and 2025, much higher than 131% in the US.

As of 2025, Shein’s total apparel sales in the UK, France, Germany, Italy, Spain, and Brazil (around 6.5 billion USD) already surpass the sales in the US (around 5.9 billion). It is likely that emerging markets like Brazil will become increasingly important to Shein’s future global expansion due to the price competitiveness of Shein’s products in local markets, the relatively relaxed regulatory environment, and the attractiveness of Shein’s commitment to investing in production there.

Additional reading: Inside the Chinese factories of fast-fashion giant Shein (by FRANCE 24 English | February 2026)

FASH455 Video Discussion: This ‘Loophole’ Lets $54B of Products Into the U.S. Tariff-Free (WSJ)

Discussion questions:

  1. What makes the de minimis rule controversial?
  2. Who might be the winners and losers of the suspension of the de minimis provision for U.S. imports from China? Why?
  3. Imagine you are part of the sourcing department of a U.S.-based fashion company that currently sources from China. How would you respond to the situation in the video, and what recommendations would you make regarding your company’s sourcing strategies?
  4. Do you have any other thoughts or reflections on the video?

Additional reading:

Interview with the National Committee on U.S.-China Relations: The Geopolitics of Fast Fashion–U.S.-China & the World

About the interview: Fashion is possible because of international trade. Each year, the global fashion industry generates more than $4 trillion USD and provides families with affordable clothing options. However, as fast fashion continues to grow, so does awareness of pressing issues such as labor standards and environmental sustainability. How are the United States and China involved in the global fashion industry? How can they collaborate on the issues facing the global fast fashion industry, from production to consumption?

Sheng Lu joins the National Committee to discuss how fast fashion is a global phenomenon and how the United States and China can address common areas of concern.

Learn more about the National Committee on U.S.-China Relations (NCUSCR)