In the face of an escalating trade war initiated by President Donald Trump, used clothing outlets seem set to experience a positive impact, even while businesses globally try to bypass potential harm, as per analysis by industry specialists. Although American fashion trends significantly affect international preferences, the overwhelming majority of apparel sold within the U.S. originates from international sources. Short-term predictions by Yale University Budget Lab indicate consumer price boosts of 65% for garments and 87% for leather products, attributing this to U.S. tariffs, which ‘unfairly target’ these items.
Increased prices might influence buyers sensitive to costs to transition to online platforms for used items, consignment stores, and charity shops, in pursuit of good deals, or as a means to monetize their existing clothing collections. Secondhand items are usually priced lower than their new counterparts and are only subjected to tariffs when sourced internationally. ‘I foresee the resale market thriving in an otherwise shrinking marketplace,’ and ‘In this tumultuous climate, those providing value are the ones who will consistently triumph,’ are the sentiments being echoed.
However, this optimistic forecast for the secondhand fashion industry faces uncertainties. These include speculations about whether tariff impositions by the authorities will endure long enough to significantly affect consumers and alter their purchasing habits. Another question is whether used goods retailers will hike their prices in response to the broader market trends or due to an increase in consumer demand.
The resale garment market has been thriving even before the intimidations of tariffs began to haunt American fashion. Data shows growing interest in resale marketplaces with mobile application downloads for nine such platforms rising by 3% between January and March. This is the first quarterly increment observed in three years. App downloads also reportedly shot up in the week ending March 31, in comparison with the same period last year. This coincides with the time when President Trump announced his but now on-hold, penal tariffs on several countries.
Where previously, customers searched for unique, collectible vintage clothing items to augment their collections, lately, there’s been a trend towards using these platforms as alternatives for regular fashion pieces. ‘Given the constant discounts offered by traditional retailers, purchasing secondhand items still offers cheaper alternatives,’ observed a savvy shopper.
In response to this trend, companies that run these online marketplaces have been investing in technology enhancements to improve the ease with which customers can locate items. Innovations like visual search tools enhance the user experience and are expected to ‘yield beneficial results in the face of market disruptions.’
There is a potential challenge for American re-sellers who import used items from European Union nations. If President Trump proceeds with plans to implement ‘reciprocal’ tariffs on majority trading partners and abolishes the import tax exception for parcels priced below $800, they would face a 20% duty.
This has led to the emergence of a circular fashion coalition, driven by a leader who is advocating for exemptions on tariffs for resold and recycled goods. Previous duty-free provisions for low-value parcels from China have already been abolished by President Trump, an action that might indirectly favor secondhand clothing dealers by making low-cost Chinese clothing more expensive.
In the luxury arena, an online and brick-and-mortar chain named ‘Rebag,’ known for dealing in used designer handbags with prices ranging from several hundreds to tens of thousands of dollars, is betting on tariffs to bring in new clientele.
If these tariffs interfere with the economics of fast fashion, leading to discourage impulsive and frivolous purchases, that would indeed be a favorable outcome. In conclusion, as stated by a valued customer, ‘I would be delighted if this new trend could divert shoppers onto a different path.’