Shein's ultra-low-price business model is coming under increasing pressure from higher tariffs. The tariff pressure has also hit Shein's bottom line. European sales increased about 9% in 2025, sharply below the 33% growth recorded between 2023 and 2024. First-quarter 2026 sales increased just 2% from a year earlier. The warning is significant because low prices have been central to Shein's rapid expansion in the U.S. and Europe.