Can Shein Keep Prices Low After Tariffs?

The company built its name on very low prices.

Now that prices are rising, that model is becoming harder to protect.

So this is not just a small cost problem.

It sounds like the whole pricing strategy is under strain.

Exactly. In documents for its planned Hong Kong listing, Shein said it started raising US prices in May 2025.

The reason was new tariffs.

Those are extra taxes on imports.

And the numbers show the effect quite clearly, don’t they?

They do. Shein said US revenue fell by more than 3% between 2024 and 2025.

In the first quarter, sales in the US dropped 14% compared with the same period a year earlier.

That is a sharp fall for a company that grew so fast before.

Yes, and the company also warned that Europe could feel a similar hit.

Europe is Shein’s biggest market.

The EU has now ended duty-free shipping for low-value packages.

So the same pressure is showing up in two big markets at once.

That means more fees on many shipments.

Shein said it may raise prices in Europe too, to cover part of the higher cost.

But the company also warned that sales volume there could fall in the short term.

I noticed the filing sounds more cautious than the company used to sound.

It does. Shein used to say its low prices came mainly from its supply chain and its small-batch system.

Now, though, the loss of tax advantages is changing the whole picture.

A business expert quoted in the report said this is a much more basic change than just one new cost.

So the problem is not only profit, but also identity.

Yes. If a brand is known mainly for being cheap, it becomes hard to keep customers once prices rise.

That is the risk Shein now faces, especially before an IPO.

Investors look closely at growth and profit.

And the profit pressure is already visible?

Very much so. Shein said companywide profit fell 39% between 2024 and 2025.

In the first quarter it moved to a $99 million loss.

That came after a profit of $395 million a year earlier.

That is a huge change in a short time.

It is. The wider message is that cheap prices can help a company grow fast.

But if that is the main advantage, it can disappear quickly when rules change.

Indonesia is fighting a large wildfire problem in a very dry season.

Now we go to Ethan, our LinguaWire correspondent for environment.

Daniel, this is a major emergency.

Almost 50,000 firefighters and disaster workers are now battling wildfires across parts of Indonesia.

Dozens of helicopters are helping from the air.

That is a huge response.

Where are the worst fires?

One major fire is in Bromo Tengger Semeru National Park in East Java.

Officials say about 743 hectares have burned there.

The park has been closed to visitors until further notice.

So the fire is not only burning land.

It is also changing daily life for visitors and local workers.

Yes, and that closure matters because this is a very popular place.

The fire has burned dry grassland, plants, and protected Edelweiss flowers.

Flames have also moved toward a well-known viewpoint used by tourists.

What are officials saying is driving these fires?

They point to the dry season and to El Nino conditions.

In simple terms, El Nino can make weather drier in this part of the world.

That raises the fire risk.

Officials said this year’s dry season is more intense and longer than usual.

And the dry weather is making every part of the response harder, I imagine.

Exactly. In Jambi province, almost 6,000 firefighters have been sent in.

Deep peat soil is making the job more difficult.

Limited water is also a problem.

Hard access and strong winds are too.

I saw that cloud seeding was mentioned too.

Was that an option?

Not this time. Officials said they could not find rain-bearing clouds suitable for weather modification.

So they are relying on water bombing and ground teams.

That sounds like a very direct, very physical fight against the fires.

It is. And the scale is growing.

The forestry ministry says more than 107,000 hectares of land caught fire nationwide from January to June this year.

That is already twice the area burned in all of 2023.

That number gives the crisis real weight.

It does. Officials are also warning people not to do things that could start new fires.

That includes throwing away cigarette butts or clearing land by burning.

So this is not only about weather.

It is also about human action and how quickly small sparks can become large disasters.

First, three words from the wildfire story.

Firefighters means people whose job is to put out fires. In the story, almost 50,000 firefighters and disaster workers were battling the wildfires. Example: Firefighters worked through the night to protect the village.

Helicopters means aircraft with rotating blades that can move people or water over hard-to-reach places. In the story, helicopters helped the teams fight the fire from the air. Example: Helicopters brought water to the mountain fire.

Access means the way to reach a place. In the story, officials said difficult access made the firefighting work harder. Example: The road closed, so access to the park was slow.

Now a grammar point: be going to.

We use be going to to talk about a plan or a likely future result.

Shein is going to raise prices in Europe.

The park is going to stay closed until further notice.

Repeat after me: is going to raise prices