Stores retailing secondhand clothing, shoes, and accessories are in a position to benefit from President Donald Trump’s trade war, while businesses globally attempt to mitigate potential damage, according to industry experts.
Despite the international influence of American styles, almost all the clothing sold in the United States is produced abroad. Recent estimates from the Yale University Budget Lab suggest short-term consumer price increases of 65% for clothing and 87% for leather goods due to U.S. tariffs impacting these categories disproportionately.
These price increases may prompt cost-conscious consumers to explore online resale sites, consignment boutiques, and thrift stores for bargains or ways to monetize their wardrobes. Used items are generally more affordable than new ones and are only subject to tariffs if imported from abroad.
Kristen Classi-Zummo, an apparel industry analyst at Circana, remarked that resale could thrive in a declining market, stating that value-driven channels would likely succeed in the current chaotic environment.
However, uncertainties remain regarding whether the president’s tariffs will persist long enough to influence consumer behavior and whether secondhand retailers will raise their prices to align with the market or respond to consumer demand.
Jan Genovese, a retired fashion executive, uses marketplaces like Mercari to sell her unwanted designer clothes. She mentioned that if tariffs drive up retail prices, she might consider high-end secondhand sites, although she acknowledged the potential impact of tariffs in rethinking shopping habits.
The secondhand clothing market was already growing before tariffs posed challenges to the U.S. fashion industry. McKinsey & Co. projected that global revenue from preowned fashion would increase 11 times faster than retail apparel sales, driven by consumer interests in saving money and environmentally conscious spending.
While millennials and Generation Z are primary buyers of used clothing, data from Sensor Tower indicates that the audience may be expanding. The firm observed a 3% increase in mobile app downloads for nine resale marketplaces, including eBay, OfferUp, Poshmark, Mercari, Craigslist, Depop, ThredUp, TheRealReal, and Vinted, between January and the end of March. Downloads for apps like eBay, Depop, ThredUp, and The RealReal rose significantly compared to the previous year, coinciding with Trump’s unveiling of paused punitive tariffs.
Classi-Zummo noted a shift in consumer behavior, with more shoppers seeking secondhand options for regular fashion items, not just vintage or collectible pieces, citing cost-effectivity compared to new purchases despite available discounts.
Poshmark, a platform for buying and selling preowned clothing, is prepared to capitalize on the tariff situation, with CEO Manish Chandra highlighting technological upgrades like a visual search tool to improve user experience amid market disruptions.
Emily Gittins, CEO of Archive, observed increasing urgency among clothing brands to partner with her San Francisco-based company, which manages resale programs for brands like Dr. Martens and The North Face. She sees untapped inventory in U.S. closets and warehouses as a potential revenue source, especially as brands limit foreign manufacturer orders.
Analysts predict that off-price retailers such as TJ Maxx and Burlington Stores will better withstand tariffs compared to regular apparel chains and department stores due to their inventory of leftover U.S. merchandise.
However, resale vendors may not be immune to tariff-related disruptions, as noted by Rachel Kibbe, founder and CEO of Circular Services Group. U.S. sellers importing secondhand inventory from the EU would incur a 20% duty if reciprocal tariffs are introduced and the current import tax exemption is eliminated.
Kibbe leads a coalition seeking a tariff exemption for used goods to be resold. Meanwhile, James Reinhart, CEO of ThredUp, suggested that the removal of the “de minimis” provision, which ended duty-free status for low-value parcels, would benefit his business. Yet, he expressed skepticism regarding the impact of resale channels on individual brands’ operations.
Rebag, dealing in used designer handbags, expects tariffs to attract new customers and plans to expand its physical store presence, adjusting prices in response to market fluctuations, according to CEO Charles Gorra.
Lastly, Norah Brotman, a senior at the University of Minnesota, resells thrifted fashions from Goodwill on Depop. She sees potential benefits if tariffs alter the fast fashion economics, curbing excessive consumption.
