Tariffs drive resale fashion surge

[UNITED STATES] The U.S. secondhand fashion market is experiencing unprecedented growth, fueled in part by recent import tariffs that have made new clothing more expensive. With consumers seeking budget-friendly alternatives, resale platforms like ThredUp, Poshmark, and Depop are seeing a surge in demand. Industry experts predict this trend will continue, potentially reshaping the future of fashion retail.​

The Tariff Effect: Rising Prices and Changing Habits

In early 2025, the U.S. government implemented sweeping tariffs on imports from over 180 countries, including China. These tariffs have led to significant price increases in new clothing and leather goods, with estimates suggesting a 65% rise in apparel costs and an 87% hike in leather goods prices . As a result, many consumers are turning to secondhand options to maintain their wardrobes without breaking the bank.​

A recent survey by ThredUp revealed that 59% of Americans plan to seek secondhand items if apparel prices continue to rise, with millennials leading the charge at 69% . This shift in consumer behavior is not only driven by cost but also by a growing awareness of sustainability and environmental impact.​

Market Growth and Future Projections

The U.S. secondhand apparel market reached $43 billion in 2023, growing seven times faster than the overall clothing market. ThredUp projects this market will expand to $73 billion by 2028, with online resale platforms accounting for a significant portion of this growth . Globally, the secondhand fashion market is expected to reach $350 billion by 2028, up from $197 billion in 2023.

This rapid growth is attributed to several factors, including advancements in artificial intelligence that enhance the online shopping experience, increased consumer interest in sustainable fashion, and the economic pressures that make secondhand options more appealing.

Challenges and Considerations

While the surge in secondhand fashion presents opportunities, it also comes with challenges. Resale platforms and thrift stores are facing increased competition for inventory, leading to higher wholesale prices. Additionally, some sellers are concerned about the impact of tariffs on their supply chains, particularly those sourcing goods from international markets.

Moreover, the potential for retaliatory tariffs from other countries could affect the global resale market, limiting access to inventory and impacting international sales.

The Road Ahead: A Sustainable Shift

Despite these challenges, the outlook for the secondhand fashion market remains positive. Consumers are increasingly prioritizing value and sustainability, and resale platforms are adapting to meet these demands. The rise of "quiet luxury" and minimalist styles reflects a broader cultural shift towards thoughtful consumption and away from fast fashion trends.

As the market continues to evolve, stakeholders across the fashion industry are recognizing the importance of the secondhand sector. From major retailers to independent sellers, there is a collective effort to support and expand this growing market, ensuring that it remains a viable and sustainable alternative to traditional retail.

While tariffs have introduced complexities into the fashion industry, they have also accelerated the growth of the secondhand market. As consumers seek more affordable and sustainable options, resale platforms are poised to play a pivotal role in shaping the future of fashion retail.​