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New Tariffs, Old Treasures

Written by Arbitrage2025-04-18 00:00:00

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The secondhand shopping trend is gaining momentum in 2025, driven by economic pressures, environmental concerns, and shifting consumer values. As new tariffs on imported goods raise prices on everything from clothing to electronics, more Americans are turning to resale as a practical and sustainable alternative. Ken Murphy, OfferUp's chief innovation officer, remarked, "Consumers want to stretch their budgets without sacrificing quality."

With the United States importing nearly all of its clothing and shoes (more than half come from China, Vietnam, and Bangladesh alone), soaring apparel prices from tariffs could send even more shoppers thrifting. Dr. Sheng Lu, professor of fashion and apparel studies at the University of Delaware, said, "The current situation is unprecedented because, simply put... all the major suppliers of apparel to the U.S. market, they will face a tariff hike. Very likely, these additional sourcing costs will pass on to consumers." The popularity of secondhand shopping was already on the rise before the most recent tariffs. According to Capital One Shopping Research, in 2023 the U.S. secondhand market generated an estimated $53 billion in revenue, accounting for 42% of the global reselling market. A 2024 re-commerce report from OfferUp found that 35% of shoppers embarked on their first resale journey in the previous year, an 8% year-over-year increase.

Beyond the economics of it, secondhand shopping offers significant environmental advantages. The fashion industry is a major polluter, consuming vast amounts of water and contributing to landfill waste. With the rise of ultra-fast ultra-cheap fashion brands ("fast fashion"), the volume of clothing produced and shipped globally continues to explode, and consumers are offloading more of it after just a few wears. Buying used clothing extends the life of garments, thus reducing the need for new production and the associated environmental costs. According to ThredUp, the resale market is expected to grow by 9% annually, reaching $74 billion by 2029, partly due to these environmental considerations.

One way to fight against the environmental waste is to shop sustainably, and not just in the environmental sense. Dr. Jennifer Le Zotte, a history professor at the University of North Carolina Wilmington, who specializes in material culture, recommends that people choose items they can wear for a long time, both because the quality is durable and because they aren't just a passing trend.

As consumers seek affordable and sustainable options, the secondhand economy is likely to continue its upward trajectory. Whether shopping at local thrift stores or online platforms like ThredUp or Poshmark, more Americans are finding value in giving pre-owned items a second life. 83% of Gen Z consumers (those born between 1997 and 2012) have either purchased or are interested in secondhand apparel, with 64% of Gen Zers searching for an item secondhand before buying it new. Older consumers are less likely to purchase secondhand apparel: 32% of consumers 38 to 55 years of age are willing to buy secondhand clothing, but only 11.8% of consumers age 55 to 64 purchase secondhand clothing.


Experts say it could take months or even years to see the effects of tariffs on the secondhand market - whether positive, negative, or negligible. "The rates of our consumption for items like clothing are so historically high compared to previous decades that it might just be a drop in the bucket, whatever happens," said Dr. Le Zotte. Dr. Lu recognized that this moment presents an opportunity for reflection: "If this reminds consumers about their actual needs for clothing or whether they really need to spend so much money purchasing new clothing... maybe this could be a silver lining of all these [tariffs]," he said. He encouraged consumers to do their homework - whether that's revisiting the size of their clothing budget, shopping in their own closets, or monitoring price fluctuations for things they really need.

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