Shein says US tariff hit won’t stop fast-fashion flood

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.

‘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 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.

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 ndertaken 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 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.(AFP)