The news: Shein is set to slash its UK IPO valuation to $50 billion, down 24% from its last funding round and half its $100 billion peak in 2022, per Reuters.

Why is this happening? Shein faces hurricane-force headwinds that challenge its market positioning both in the US and EU.

• In the US, Shein faces the Trump administration’s plans to close the “de minimis” loophole, as well as the threat of being added to the Department of Homeland Security’s forced labor list—which would effectively prevent it from selling in the US.