Singapore-based online fast-fashion retailer Shein plans to slash its valuation to about $50 billion in a possible London IPO, according to Reuters.

That figure, nearly a quarter below Shein's valuation in a 2023 funding round, comes amid growing challenges.

Recently, the Trump administration decided to end the policy of allowing low-cost goods to enter the U.S. duty-free, calling off the so-called "de minimis" duty exemption.

The policy exempted packages valued at less than $800 from import duties when they entered the U.S.

The decision casts a shadow over Shein's business prospects, as the end of the duty exemption means it will not be able to continue to take advantage of the import rules to keep prices low.

Analysts and industry experts say the elimination of the "de minimis" tariff exemption could hurt Shein's profitability and push up the price of its goods in the U.S., its biggest market.

Friday's report, citing people familiar with the matter, said Shein's final IPO valuation will depend on the impact of the end of the policy on its business.

Since the "de minimis" duty exemption was only lifted this week, it will take time to assess its impact.