Fast-fashion giant Shein offers between 2,000 and 10,000 new items a day. But it will have to review its plans. The group, which distributes its products in more than 150 countries worldwide, was considering relocating some of its production outside China amidst the trade war with the United States.

This is not to the liking of Beijing, which fears job losses if Shein has to diversify its supply chain to get around tariffs, reports Bloomberg. The Chinese government is therefore asking Shein to “review its plans.”

On top of the tariff hikes, which include an additional 20% surtax that would rise to 54% from 9 April, the company could also be impacted by another measure announced by US president Donald Trump: the end of a tax on small parcels with a value less than $800 when they arrive in the United States. The executive order issued 2 April cancels the duty-free “de minimis” treatment (an exemption from customs duties) enjoyed by small parcels coming from China and Hong Kong. Until now, this mechanism has enabled Chinese e-commerce giants such as Shein and the similar Temu platform to expand in the United States. This new rule will come into force on 2 May.

For very low-cost retailers such as Shein and its cut-price products, it will now be very difficult, if not impossible, to benefit from the exemption, which remains valid above $800. In addition, the US president has also threatened to impose additional taxes of up to 50% on Chinese imports if Beijing persists in its application of additional tariffs of 34% on American products.

This article was originally published in .