**US:** Rising import tariffs have disrupted independent resellers and textile recyclers, yet are driving significant growth in the US second-hand goods market, with consumers turning to thrift shopping amid soaring retail prices and inflation.
The Surging Demand for Second-Hand Goods Amid Tariff Turmoil
As the U.S. navigates through heightened import tariffs, notably those initiated during the Trump administration, a seismic shift is occurring within the retail landscape. Independent resellers and vintage stores, once comfortably integrated into the global market, now find themselves grappling with challenges that threaten their business models while simultaneously witnessing a surge in demand for second-hand goods. The ripple effects of these tariffs are far-reaching, affecting everything from consumer behaviour to the very fundamentals of the textile recycling industry.
The latest tariffs, which soared up to 60% on imports from certain countries, have left many in the resale industry scrambling. Novak, a reseller, emphasised the precarious situation, stating, “These tariffs could completely price us out of being able to import pieces from the European Union. It’s crucial to have access to the global market; it’s so much different than just having the U.S. market for secondhand, especially because most of these pieces are outside of the States.” This sentiment echoes through the community of independent resellers, who depend heavily on international imports to stock their stores.
The founder of Toronto-based vintage store Absolutely Fabrics, Kaelen Haworth, also reported that business has taken a hit. Approximately half of her online sales are directed towards the U.S., but since the introduction of tariffs, she has seen that growth plateau. “We’re seeing people either hesitant to buy from us from the U.S. or refusing a shipment because the duties and taxes are too high,” she stated. In a startling revelation, she noted that her business incurred losses amounting to CA $2,000 (approximately US $1,450) in one month alone from refused shipments. The unpredictability introduced by tariffs not only deters new customers but erodes the existing sales base, creating a precarious situation for small businesses.
As consumer uncertainties manifest, the burgeoning second-hand market continues to exhibit resilience. Experts predict that the U.S. resale market could expand dramatically, from a projected $25 billion in 2024 to $44 billion by 2029, as inflation and rising retail prices prompt shoppers to seek more affordable options. The Yale University Budget Lab estimates that clothing prices could rise by 65% and leather goods by an astonishing 87%, making second-hand goods an enticing alternative to new items. According to industry leaders, platforms like ThredUp and Poshmark are capitalising on this shift, with shares of some resale companies witnessing a surge even amidst broader market downturns.
However, while the second-hand market is set to thrive under these conditions, there are risks lurking in the shadows. As Peter Majeranowski, president of textile recycling company Circ, notes, “The circular fashion transition relies on long-term offtake commitments, industrial scale infrastructure and policy stability.” The volatility introduced by tariffs complicates investment and scaling efforts for textile recyclers, whose operations depend on machinery sourced from abroad. As these costs increase, concerns arise that the progress towards a sustainable circular economy in clothing could be significantly impeded.
Moreover, some in the industry advocate for a tariff exemption for used goods to promote this prosperity further. With the resale market primed for expansion, should policymakers heed these calls, it could alleviate some of the pressures faced by small businesses while simultaneously fostering a more sustainable mode of consumption among consumers.
Amidst these transitions, companies reliant on cheap imports are feeling the strain. The elimination of the “de minimis exemption,” which previously allowed low-cost packages to enter the U.S. duty-free, has further complicated matters for fast fashion retailers. Consequently, companies like Shein and Temu, which thrived on rapid shipping and low pricing, are finding themselves challenged in the new landscape where tariffs become an inherent cost of doing business.
As the economic repercussions of these policies continue to unfold, the second-hand goods sector stands to benefit significantly. In a world of rising costs and consumer anxiety, thrift shopping and resale platforms may not only provide financial relief but also catalyse a more sustainable fashion narrative. The industry now finds itself at a critical juncture—a paradox where economic turmoil may ultimately drive a more conscientious approach to consumption.
Reference Map:
- Paragraph 1 – [[1]](https://news.google.com/rss/articles/CBMiswFBVV95cUxNNmpEeFg5czJ4Y19vTFFKUDNvSVZ4enRzZzR0NUdPQTk5OS1XU3pEejNuM3pvT09KcUhTWDExczdaM3BjYjBqbjhSaWVjTXRLM2o1QWNkUWdRRFJia3ktdThGTnJvTlM3cGZWSzlHZk9WUm00MVlGQy13dzZzTjZPa3ktei05SHFqV2plRzhGV0pjZEtHR2tfQ0k1ck1VQVh6dmVrNUZsS1FKM1plTzRDSW5lRQ?oc=5&hl=en-US&gl=US&ceid=US:en), [[3]](https://apnews.com/article/0d6de65d89435b96fc396e53a77381f5)
- Paragraph 2 – [[1]](https://news.google.com/rss/articles/CBMiswFBVV95cUxNNmpEeFg5czJ4Y19vTFFKUDNvSVZ4enRzZzR0NUdPQTk5OS1XU3pEejNuM3pvT09KcUhTWDExczdaM3BjYjBqbjhSaWVjTXRLM2o1QWNkUWdRRFJia3ktdThGTnJvTlM3cGZWSzlHZk9WUm00MVlGQy13dzZzTjZPa3ktei05SHFqV2plRzhGV0pjZEtHR2tfQ0k1ck1VQVh6dmVrNUZsS1FKM1plTzRDSW5lRQ?oc=5&hl=en-US&gl=US&ceid=US:en), [[4]](https://www.ft.com/content/699843b3-90f3-42c0-8ab3-0b5c3e5706bf)
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Source: Noah Wire Services
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