What's happened
Recent tariffs imposed by President Trump are affecting the secondhand clothing market in the U.S. Resellers report declining sales and increased prices, while online resale platforms see a surge in activity. The long-term effects on consumer behavior and pricing remain uncertain as the industry adapts to these changes.
What's behind the headline?
Market Dynamics
- Consumer Behavior: The tariffs are expected to shift consumer spending towards secondhand clothing as shoppers seek affordable alternatives. However, this may lead to price increases in the resale market as demand rises.
- Impact on Small Businesses: Small thrift shops are experiencing a decline in sales, with some reporting their worst days since the tariffs were enacted. Owners express concern over their ability to survive in this economic climate.
- Online Resale Growth: Platforms like Poshmark and Mercari are witnessing increased downloads and user engagement, indicating a potential shift in how consumers shop for clothing.
Future Outlook
- Price Increases: As demand for secondhand clothing grows, prices may rise, potentially making thrift shopping less accessible. This could lead to a paradox where the very solution to high retail prices becomes unaffordable.
- Long-Term Changes: The sustainability of this shift depends on whether tariffs remain in place and how consumers adapt to ongoing economic pressures. The secondhand market may continue to grow, but it will face challenges in maintaining affordability.
What the papers say
According to the New York Post, small business owners like Alexis Krase are already feeling the pinch from tariffs, stating, "We did only $250 [in sales] that day, which is not enough to even pay my staff." This sentiment is echoed by Kristen Classi-Zummo from Circana, who notes that resale markets are likely to grow as consumers seek value in a declining market. The Independent highlights that the Yale University Budget Lab predicts significant price increases for clothing, which could drive more shoppers to secondhand options. However, the uncertainty surrounding the duration of these tariffs complicates the outlook for both consumers and retailers. As noted by the NY Post, while online resale platforms are seeing a surge, the overall impact on small businesses remains concerning, with Krase stating, "I think no small business can survive this."
How we got here
The U.S. has seen a rise in tariffs on imported goods, particularly clothing, which has led to increased prices in retail. This situation has prompted consumers to explore secondhand options as a cost-saving measure, impacting both brick-and-mortar and online resale markets.
Go deeper
- How are thrift shops adapting to the new tariffs?
- What are the long-term effects on the secondhand clothing market?
- Are online resale platforms benefiting from these changes?
More on these topics
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.