Shein: Tariffs Won’t Impact US Market, No Forced Labour: Executive
Tariffs Won’t Affect US Market
Tariffs imposed by the Trump administration will not eject fast-fashion juggernaut Shein from the US market, its executive chairman Donald Tang has told AFP. The head of the online platform, which has come in for scrutiny over its environmental footprint and allegations of human rights violations, also insisted that the company does not use forced labour.
"We’re not focusing on customs policy," Tang said about the new US import levies, speaking during a visit to France this week. "We will find a way to deliver the goods," he added, saying that Shein’s "business model" had seen the company through other global trade upsets like the coronavirus pandemic.
No Forced Labour
Like other major players in the textile sector, Shein has come in for regular allegations of exploiting members of the Uighur minority in the cotton fields and factories of western Chinese province Xinjiang. "The policy is zero tolerance" on forced labour, Tang told AFP. "We don’t tolerate it at all, no questions asked."
He added that the company had a code of conduct "totally, 100 percent aligned with the International Labour Organization Convention" that it required suppliers to sign. And once deals are in place, "we have international renowned auditors come into the factories with unannounced visits," Tang said.
Market Flotation
Many investors expect Shein to float on a major global stock market sometime this year, with London seen as the most likely venue. But Tang was not giving away any hints about the plans — beyond saying that a listing would reinforce trust. "We wanted to embrace the universal mechanism for accountability and transparency, to have transparency as a requirement, not optionality," he told AFP, hoping to stoke "public trust, which is crucial for our long-term growth."
Environmental Impact
Shein will likely face a hard sell when it comes to European environmental groups. Friends of the Earth calculated in 2023 that Shein’s operations — which it said add around 7,200 new items for sale per day on average — emit "between 15,000 and 20,000 tonnes of carbon dioxide" every 24 hours. The European Union and individual countries including France are already weighing regulations to limit waste from fast-fashion giants.
Conclusion
Shein’s ability to navigate the challenges posed by tariffs and environmental concerns will be crucial to its future success. While the company’s executive chairman is confident that it can adapt to changing conditions, some critics remain skeptical about its practices. As the company prepares for a potential stock market flotation, it will be under intense scrutiny from investors, environmental groups, and human rights activists.
Frequently Asked Questions
Q: Will Shein’s tariffs impact its US market?
A: No, according to the company’s executive chairman, Donald Tang.
Q: Does Shein use forced labour?
A: No, according to Tang, who says the company has a zero-tolerance policy on forced labour.
Q: Is Shein planning to list on a major stock market?
A: Yes, according to market expectations, with London seen as the most likely venue.
Q: What are the environmental concerns surrounding Shein?
A: Shein’s operations are emitting high levels of carbon dioxide, according to Friends of the Earth.