Secondhand stores in US win big as trade war drives fashion prices up
Secondhand style becomes the smart choice during tariff turmoil (Illustrative photo: Getty Images)
The secondhand clothing market in the US could see major growth if new tariffs push prices of imported apparel higher, according to AP News.
As the trade war intensifies, its ripple effects are felt far beyond clothing racks, with gold hitting a record $3,384 per ounce and the dollar plunging to a three-year low.
These shifts underscore the broader economic uncertainty triggered by Trump’s tariff push.
Trump’s tariffs could raise clothing prices by 65% and leather goods by 87%, according to Yale Budget Lab. With most US apparel imported, cost-conscious consumers may flock to secondhand marketplaces like Poshmark, ThredUp, and Depop.
"Resale is going to grow in a market that is declining," said Kristen Classi-Zummo of Circana. "Channels that bring value will win."
Archive, which builds resale programs for brands like Dr. Martens, noted a surge in demand from labels hoping to monetize unsold US inventory.
"There’s a huge amount of uncertainty," said Archive CEO Emily Gittins. "So resale is basically where everyone’s head is going."
Resale may benefit, but challenges remain
Not all resale businesses are immune. Rachel Kibbe of Circular Services Group warned that secondhand imports from Europe could face a 20% duty under new rules.
ThredUp CEO James Reinhart welcomed the impact of higher tariffs on fast fashion but remained skeptical: "Brands will do more resale, but they’re just trying to survive."
Meanwhile, Gen Z, millennials, and even retirees like Jan Genovese are eyeing resale as a smarter, cheaper shopping choice. "Sticker shock might push me in that direction," she said.
Recently, California has filed a federal lawsuit against the Trump administration, claiming the tariffs unfairly hurt the state’s economy. Governor Newsom said, "The president doesn’t have the unilateral authority to impose one of the largest tax increases in US history."
