According to CoinMeta, Shein is facing a survival threat due to tariffs affecting its low-price business model, which has led to a stagnation in growth in the United States and Europe and threatens its upcoming initial public offering (IPO) in Hong Kong (IPO). In the upcoming IPO document, Shein indicates that raising prices to offset the costs of new tariffs has resulted in a slowdown in sales in the United States, and a similar situation is expected to occur in the European market as well. Since May 2025, Shein has begun to pass on most of the additional tariff costs to the U.S. market, and there has been a negative impact on net revenue in this region. Between 2024 and 2025, U.S. revenue decreased by more than 3%. In the first quarter, sales plummeted by 14% compared to the same period last year. In Europe, Shein predicts that the newly implemented parity fees will further affect its profitability.