Colorado Independent
Colorado Independent
5/6/2025, 3:40:25 PM

**Shein's MAGA Pivot Faces Trump’s Tariff Tempest** By Staff Reporter WASHINGTON, D.C. — Shein, the ultra-fast-fashion giant that rose to global dominance with its dirt-cheap prices and social media savvy, is navigating treacherous waters in the U.S. capital. Once a darling of budget-conscious shoppers, the company now finds itself entangled in a web of political maneuvering, trade disputes, and allegations of ethical lapses. As it courts favor with the Trump administration’s inner circle, Shein is grappling with punishing tariffs and a closed trade loophole that threaten its business model, all while its bid to go public falters. Shein’s journey to becoming a household name was built on a carefully crafted image: a borderless brand, born on the internet, with no ties to any single country. Though it moved its headquarters to Singapore, its Chinese roots have drawn scrutiny, amplified by accusations of labor abuses and environmental harm. The company’s low prices, fueled by a trade loophole known as the de minimis provision, allowed it to flood the U.S. with duty-free packages. But this advantage is now under fire. Since President Donald Trump’s return to office, Shein has faced a double blow. New tariffs on Chinese imports are eroding its price edge, and the elimination of the de minimis rule—allowing packages under $800 to enter the U.S. duty-free—has disrupted its supply chain. “Because the administration wants to discourage imports from China, you are going to pay duty, and it might take longer to get cleared,” said John Leonard, a former deputy executive assistant commissioner at Customs and Border Protection. The result? Higher prices and slower shipping for Shein’s customers. In response, Shein has gone all-in on Washington’s influence game, a stark departure from its earlier naivete about American politics. Public records show the company spent $3.9 million on federal lobbying in 2024, up from zero before 2022. In the first quarter of 2025, it shelled out another $1.49 million. Its roster of allies reads like a who’s-who of Trumpworld: Kash Patel, the FBI director, holds stock in Shein’s parent company, Elite Depot, valued between $1 million and $5 million. Deputy Attorney General Todd Blanche previously counted Shein as a legal client. Jamieson Greer, now the U.S. Trade Representative, advised the company on trade policy before joining the administration, according to a former employee and internal documents. “Shein routinely seeks counsel from a range of advisers on priority policy areas,” a company spokesperson said, defending its outreach. “We welcome the opportunity to work with policymakers to ensure our business model and supply chain policies are well understood.” But Shein’s MAGA pivot hasn’t shielded it from Trump’s trade crackdown. The company’s executive chairman, Donald Tang, has been spotted in D.C., pitching Shein’s virtues to skeptical China hawks. “He was totally, chapter and verse, singing the MAGA hymn of ‘I love Trump. I love America,’” said Michael Sobolik, a senior fellow at the Hudson Institute, who met Tang in June 2024. Despite these efforts, Shein’s critics remain unmoved. Senator Marco Rubio, now Secretary of State, warned in 2023 that Shein “steals intellectual property, infringes copyrights, exploits U.S. trade law, and uses fabric linked to Uyghur slave labor.” Shein’s troubles extend beyond politics. Its attempt to go public has hit roadblocks, with the U.S. market closed off and investors pressuring the company to slash its valuation from $100 billion in 2022 to $30 billion. The company is now eyeing London’s stock exchange, a smaller stage for its ambitions. Meanwhile, allegations of ties to Xinjiang’s cotton supply chains—where China has been accused of human rights abuses—continue to dog the company. A 2023 Bloomberg report found cotton in Shein products linked to the region, prompting a bipartisan group of senators to demand answers. Shein’s response, crafted with input from advisers like Greer, leaned on technical jargon about “proprietary material traceability” systems. It failed to quell concerns. “The problem is China’s abuse of a global trade system,” said Adam Savit of the America First Policy Institute, pointing to the de minimis loophole as a prime example of unfair trade practices. As Shien raises prices to offset tariffs, its customers may feel the pinch. The company’s lobbying blitz, bolstered by hires like retail veteran Kent Knutson, signals a long game. But with Trump’s trade barriers in place and ethical questions lingering, Shein’s D.C. charm offensive may not be enough to secure a reprieve. “They’re hoping their Trump-friendly connections pay off,” Sobolik said. For now, the fast-fashion titan is learning that winning over Washington is far tougher than winning over shoppers.

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