Shein Says US Tariff Hit Won't Stop Fast-fashion Flood

FILE PHOTO: A company logo for fashion brand Shein is seen on a pile of gift bags on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo

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 labor.
'Customers not affected'
"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.
This time, however, China is directly in Washington's crosshairs, with 20-percent additional tariffs levied on products imported from the country.
The Trump administration has also cast doubt on whether imported packages worth less than $800 will continue to enjoy duty-free status.
Shein -- a firm founded in China but now headquartered in Singapore -- and Temu have for years surfed on that practice to send tens of billions of dollars worth of product into the US from their network of Chinese factories.
Tang said that whatever happens, "we will do our best to make sure the customers' interest and customers' experience is not affected" -- without detailing any specifics.
'No forced labor'
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 the northwestern Chinese region Xinjiang.
"The policy is zero tolerance" on forced labor, 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 Labor 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.
David Hachfeld of campaign group Public Eye, which has published an investigation into Shein, said the group's measures had not been enough.
"In manufacturing, 75 hours a week was typical for most workers," Hachfeld said, with "one and a half free days per month".
Amnesty International has also called for Shein to be more transparent.
Any company with operations in Xinjiang should set up human rights checks, the campaign group has argued.
"If Shein has not undertaken this crucial step, it should pause its operations in Xinjiang," Amnesty told AFP by email.
"Conversely, if the company is confident it has eliminated such risks, it should publicly disclose how this has been verified".
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".
The head of the British Parliament's Business and Trade Committee said in January he and other members were "horrified" by Shein's lack of transparency about where its products come from.
Tang said that the company has since responded to MPs' questions.
The brand recently announced it will pump 200 million euros ($220 million) into European circular-economy and recycling projects, in a bid to polish its image.
"We have been meeting different companies in Paris and other cities in France and talking to the technology leaders" in the sector, Tang said -- without naming the prospective partners.
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 tons 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.