U.S. Tariffs Under Trump Boost Secondhand Clothing Market Amid Rising Apparel Costs

U.S. tariffs on imported apparel and leather goods under President Trump's trade policies have increased prices by up to 65% for apparel and 87% for leather goods, according to the Yale University Budget Lab. This has led consumers to turn to secondhand clothing as a more affordable option, reshaping the retail landscape. Resale platforms and thrift stores are experiencing increased interest and activity. The tariffs, affecting imports from China, Vietnam, Bangladesh, and Pakistan, have disrupted the U.S. fashion industry, which heavily relies on global supply chains.

Tariffs Hit Fast Fashion and Global Supply Chains

The Trump administration’s trade war has introduced sweeping tariffs on apparel and footwear imports, targeting not only China but also major textile-exporting nations such as Vietnam, Bangladesh, and Pakistan. While a 90-day suspension has temporarily delayed some of these tariffs, a baseline 10% tariff remains in effect globally, and Chinese goods now face tariffs as high as 145%—with a 120% rate already implemented and a per-item cost rising from $100 to $200 between May and June.

These measures have rattled the U.S. fashion industry, which relies heavily on global supply chains. The United States Fashion Industry Association, representing major retailers like Walmart and Urban Outfitters, has warned that the sector is more dependent on international sourcing than nearly any other category of manufactured goods.

Fast fashion brands such as Shein and Temu, which previously benefited from the “de minimis” exemption allowing tax-free imports under $800, are now facing a level playing field. The exemption has been revoked for Chinese shipments, making their ultra-low-cost offerings significantly more expensive. According to a congressional report, Shein and Temu together accounted for 17% of the U.S. discount fashion market.

Price Hikes Push Consumers Toward Resale

The immediate consequence of these tariffs is sticker shock at the retail level. With prices for new clothing and accessories climbing, cost-conscious consumers are seeking alternatives. Secondhand clothing, which is not subject to tariffs unless imported from abroad, has emerged as a compelling option.

Kristen Classi-Zummo, an apparel industry analyst at Circana, noted that resale is “going to grow in a market that is declining.” She emphasized that value-driven channels are likely to thrive amid the chaos. McKinsey & Co. had already projected that global revenue from pre-owned fashion would grow 11 times faster than retail apparel sales by 2025, a trend now accelerated by tariff-induced price increases.

Sensor Tower data shows that mobile app downloads for nine major resale platforms—including eBay, Poshmark, ThredUp, and The RealReal—rose 3% in the first quarter of 2025, marking the first quarterly gain in three years. Downloads spiked further during the week of March 31, when Trump announced the latest round of tariffs.

Resale Platforms and Thrift Stores See Opportunity

Online resale platforms are preparing to capitalize on the shift. Poshmark CEO Manish Chandra said the company is enhancing its technology, including visual search tools, to improve the user experience and capture more of the growing resale market. Archive, a San Francisco-based firm that builds resale programs for brands like Dr. Martens and Lululemon, reported increased urgency from fashion labels looking to monetize existing U.S. inventory.

Thrift stores and consignment boutiques are also seeing increased foot traffic. Dani Feher, founder of Philadelphia-based tailoring company Pransome, expressed hope that the tariffs would encourage consumers to shop locally and invest in quality garments. However, some experts caution that increased demand could lead to higher prices even in the secondhand market, especially if donations decline as people hold onto clothing longer to save money.

Industry Adjustments and Strategic Shifts

Retailers are scrambling to adjust. Uniqlo’s parent company reported that the immediate impact of tariffs would be limited due to existing U.S. inventory, but acknowledged that future sourcing from countries like Vietnam, Bangladesh, and Indonesia could be affected. Bloomberg analyst Poonam Goyal noted that fast fashion brands may absorb some of the 10% global tariff, but the higher rates on Chinese goods are harder to offset.

Off-price retailers such as TJ Maxx and Burlington are expected to weather the storm better than traditional department stores, as they rely on leftover domestic inventory rather than new imports. Meanwhile, luxury resale platforms like Rebag are preparing to adjust their pricing strategies in response to rising costs of new designer goods. CEO Charles Gorra said the company plans to open more physical stores to meet anticipated demand.

A Broader Shift in Consumer Behavior

The tariff-driven price increases are not only changing where people shop but also how they think about fashion. Younger consumers, particularly millennials and Gen Z, have long embraced secondhand shopping for its affordability and sustainability. Now, older demographics are joining in. Jan Genovese, a 75-year-old retired fashion executive, said she is considering high-end resale sites like Mercari in response to rising prices.

Norah Brotman, a 22-year-old student at the University of Minnesota, buys most of her clothes on eBay and resells thrifted items on Depop. She sees the tariffs as a potential catalyst for more mindful consumption. “I would love if this would steer people in a different direction,” she said.

Policy Uncertainty and Market Volatility

Despite the current momentum in the resale market, uncertainty looms. It remains unclear how long the tariffs will stay in place or whether secondhand sellers will raise their own prices in response to increased demand. Rachel Kibbe, CEO of Circular Services Group, warned that U.S. sellers importing used goods from the EU could face a 20% duty if Trump proceeds with reciprocal tariffs on most trading partners.

Kibbe’s coalition is lobbying for a tariff exemption on used and recycled goods, arguing that such a move would support both economic and environmental goals. James Reinhart, CEO of ThredUp, said the removal of the de minimis provision and the 145% tariff on Chinese goods would benefit his business, but he remains skeptical that resale alone can rescue brands struggling under the weight of trade restrictions.

References

• Cheap things from China are poised to get pricey. Secondhand retailers are ready to take advantage
• Can Trump’s tariffs restore US manufacturing?
• Secondhand stores are poised to benefit if US tariffs drive up new clothing costs
• Could sustainable shopping get a boost as tariffs panic fast fashion brands?
• Secondhand stores are poised to benefit if US tariffs drive up new clothing costs