The news: Shein is considering ways to restructure its US business to minimize its exposure to tariffs and ease the impact of the de minimis crackdown, according to the Financial Times.

Searching for a solution: The tariffs and the imminent closure of the de minimis loophole for US imports put Shein in a difficult position, risking its exit from its largest, most important market.

• One potential strategy is to shift production from China to Brazil and India, where it already has some manufacturing capability.
• But that plan would likely displease the Chinese government, which is pressuring Shein and other companies to keep their supply chains as is—and whose goodwill Shein needs in order for its IPO to finally move forward.