In the face of President Donald Trump’s escalating trade war, stores specializing in secondhand clothing, shoes, and accessories are positioned to thrive amid global efforts to mitigate potential impacts. Industry analysts are highlighting the unique opportunity this presents for the resale market.
While American fashion styles influence global trends, most clothing sold in the U.S. is produced elsewhere. Recently, Yale University’s Budget Lab projected significant short-term consumer price hikes—around 65% more for clothing and 87% for leather goods—emphasizing that U.S. tariffs will heavily affect these commodities.
These price surges could steer budget-conscious shoppers towards online resale platforms, consignment boutiques, and thrift stores as they hunt for bargains or seek to convert their style choices into cash. Pre-used items, often cheaper than new ones, would face tariffs only if imported from abroad.
“I anticipate the resale market to expand in these economically challenging times,” noted Kristen Classi-Zummo, an apparel industry expert from market research firm Circana. Channels that offer value are expected to come out strong in this volatile environment.
However, the promising future of pre-owned fashion is fraught with uncertainties—specifically how long the tariffs will persist to significantly influence consumer behavior. Another concern is whether secondhand sellers will adjust their pricing strategies in response to market trends or growing demand.
The potential sticker shock from increasing retail prices may nudge more people towards secondhand marketplaces. Jan Genovese, a former fashion executive, sells her high-end fashion items through peer-to-peer platforms like Mercari. She admits to reconsidering luxury resale options should retail prices soar due to tariffs.
The secondhand apparel industry has already seen substantial growth, even before the looming threat of tariffs affected the U.S. fashion scene. According to McKinsey and Co., the global revenue from the resale of fashion items would expand 11 times faster than traditional retail sales, fueled by consumer preferences for cost savings and sustainable choices.
Traditionally, younger generations, such as millennials and Gen Z, were the main consumers in this sector, but new data suggest its appeal is widening. Sensor Tower reports a 3% rise in the downloading of nine resale platform apps, marking the first quarterly increase in three years.
This trend is further reflected in the surge of app downloads for platforms like eBay, ThredUp, and The RealReal around late March—coinciding with the initial announcement of punitive tariffs. Classi-Zummo observes a growing inclination among consumers to choose pre-loved items over new apparel.
“Choosing secondhand is cheaper than opting for discounts on new clothing,” she says.
Digital platform Poshmark is yet to see a sales boost post-tariff announcements; however, CEO Manish Chandra sees a prime opportunity to enhance their marketplace experience to benefit from future market disruptions.
San Francisco-based tech firm Archive has detected an increased eagerness from brands to establish resale programs. CEO Emily Gittins emphasizes untapped potential in the unused clothing inventory within U.S. households and warehouses—this could become lucrative should brands limit foreign purchases.
“The prevailing uncertainty has convinced many in the industry that resale is the way forward,” Gittins observed.
Stock analysts forecast that off-price retailers like TJ Maxx might better withstand tariff pressures than traditional clothing chains due to relying on U.S.-sourced surplus stock.
Despite the optimism surrounding resale, vendors are not immune to tariff challenges, according to Rachel Kibbe of Circular Services Group. Import duties could affect sellers bringing secondhand items from the EU if reciprocal tariffs are enacted.
James Reinhart, CEO of ThredUp, points out that removing de minimis provisions and imposing tariffs on China-made products aligns with the interests of businesses like his, giving them a competitive edge.
Conversely, Rebag CEO Charles Gorra admits that tariffs could spur new customer influxes, prompting plans for more physical store openings. The secondhand market must carefully balance pricing with the rising cost of new luxury items.
Norah Brotman, a University of Minnesota senior, favors eBay for her clothing purchases, with hopes that tariffs could curb fast fashion’s consumerism and instigate more conscientious buying habits.
“I hope this nudges people towards more thoughtful shopping choices,” she remarked.