Recent U.S. tariffs on Chinese products have significantly raised the cost of imported clothing and accessories. “The current landscape is unprecedented,” says Sheng Lu, a professor of fashion and apparel studies at the University of Delaware. With higher prices on new items, American consumers are changing how they shop.
Retailers are also under pressure, dealing with increased expenses and challenges in the supply chain. As a result, shoppers and businesses are being forced to adapt. Many consumers are turning to secondhand options as an affordable and eco-friendly alternative in today’s shifting retail landscape.
The Rise of Resale
Recently, secondhand shopping has seen rapid growth. ThredUp’s 2024 Resale Report has revealed that the used apparel market grew by 14% last year, which is five times faster than traditional retail. Alon Rotem, ThredUp’s Chief Strategy Officer and General Counsel, said, “Resale is actually in the strongest position it’s ever been in right now.”
With tariffs hiking up the prices of new goods, shoppers are quickly turning their attention to thrift stores, consignment shops, and online resale platforms. Not only does this trend save consumers money, it also helps reduce waste, making secondhand shopping a practical and eco-friendly choice.
Why Tariffs Favor Thrift
With the new tariffs driving up the price of new goods, secondhand stores are thriving. Yale University’s Budget Lab recently reported that short-term prices for clothing and leather goods could rise sharply, with estimated increases of 65% and 87%, respectively. The lab noted that U.S. tariffs “disproportionately affect” those goods.
“I think resale is going to grow in a market that is declining,” said one apparel industry analyst, Kristen Classi-Zummo. “What I think is going to continue to win in this chaotic environment are channels that bring value.” As new goods become less accessible, more consumers turn to secondhand items, making resale a preferred choice for quality and value in uncertain times.
Fast Fashion’s Price Problem
Fast fashion giants like Shein and Temu are also under pressure, increasing their prices as new tariffs hit hard. The end of the “de minimis” loophole “de minimis” loophole, which previously allowed imports under $800 to bypass duties, has added to their challenges.
With fast fashion losing its super-cheap appeal, millions of Americans are now turning toward secondhand markets. This change greatly affects thrift stores and resale apps, which are now offering the best deals for fashion-forward, budget-savvy Americans.
Changing Consumer Attitudes
Right now, economic anxiety is widespread. A recent consumer survey revealed that 86% of Americans are expecting prices to rise from higher tariffs, and 46% are planning to shop secondhand to avoid the financial blow.
The stigma around used and secondhand goods is fading fast, with 59% of shoppers stating that if tariffs make new items more expensive, they will look for more affordable options, like secondhand. This cultural shift is rapidly growing the resale market, making it a popular choice for families and fashionistas.
Investors Eye the Trend
The Financial Times reported that after tariff announcements on April 2, the shares of ThredUp and Savers Value Village have gone up by 31% and 22%, respectively.
Meanwhile, the S&P retail select index has declined by 7%. Investors expect secondhand sellers to attract bargain hunters and people who want to sell their own goods for extra money.
Luxury Resale Goes Mainstream
Right now, luxury resale is booming, too. Mastercard found that 27% of luxury spending was on secondhand items in 2024. This is expected to reach 29% in 2025. While popular luxury brands like Gucci face declining sales, their items are selling out on resale platforms like Vestiaire Collective.
Buying items secondhand offers a more affordable way to access premium brands. Nowadays, even luxury shoppers are turning toward resale for value and exclusivity. The new tariffs are accelerating this change, making luxury resale an important part of the evolving American shopping landscape.
Challenges for Secondhand Sellers
Despite strong demand, many secondhand sellers are facing their own issues. For clothes to reach secondhand stores, they must first be purchased new. With higher price tags on new goods, experts predict that Americans might hesitate to buy new items or donate old ones, which could shrink the secondhand supply and push prices up. “I don’t think the tariff war is something good or exciting for the secondhand clothing market,” says Sheng Lu.
However, others, like Adele Meyer, executive director of NARTS: The Association of Resale Professionals, are less concerned about the market dwindling, saying, “It’s never happened in the past.” In fact, some consumers may be more inclined to resell or trade their goods online, at consignment shops, or with retailers that offer credit for used goods. Either way, it will take months to years to see how these tariffs might impact the secondhand market.
Gen Z and Millennials Lead
Younger generations are currently driving the secondhand surge, with Gen Z and Millennials planning to spend nearly 46% of their apparel budgets on secondhand shopping this year. There has also been a significant increase in downloads for resale apps like eBay, Depop, and ThredUp, marking the first quarterly rise in three years.
Alon Rotem says that resales are “effectively domesticating the supply chain.” This shift, led by younger generations like Gen Z and Millennials, is transforming secondhand shopping into not just a trend but a lasting part of American retail culture.
Secondhand as the New Standard
Right now, secondhand shopping is becoming increasingly popular in America, driven by rising tariffs and financial uncertainty. The recommerce market is expected to grow by 55% in the next five years, potentially hitting $291.6 billion by 2029.
As the new tariffs continue to reshape the retail landscape, secondhand is no longer just a backup plan; it is becoming a go-to option for Americans. The future of U.S. retail looks more budget-conscious, sustainable, and adaptable than ever before.
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