America’s resale market poised to gain amid tariffs

As the U.S. administration ramps up tariffs on imported goods, the fallout for global fashion is already becoming apparent. From European luxury houses to Chinese fast fashion giants, industry players are bracing for squeezed margins, disrupted supply chains, and dampened demand from increasingly cost-conscious American consumers.

The new wave of protectionist levies—targeting a broad range of goods—threatens to upend the economics of fast fashion and luxury alike. For price-driven Chinese e-commerce players like Shein and Temu, the steep duties undermine their low-cost model and have already prompted price hikes. European luxury brands, meanwhile, may struggle to absorb additional costs without alienating aspirational customers in the U.S., their second-largest market. Already at both ends of the retail spectrum, Shein and Hermès have each announced price hikes.

In stark contrast, America’s resale sector is eyeing a windfall.

Second-hand retailers—from digital platforms like ThredUp and The RealReal to brick-and-mortar consignment chains—stand to benefit as consumers shift from new to nearly-new. With inflation still biting and discretionary spending under scrutiny, shoppers are likely to turn to resale for high-quality fashion at a lower cost.

“Resale is a rare industry that benefits from the administration’s global tariffs,” Alon Rotem, chief strategy officer at online consignment and thrift store ThredUp told the Financial Times. “Everything we sell comes from the closets of Americans, so everything we sell is immune.”

Booming second-hand apparel market

Resale platforms are already adapting to seize the opportunity. Several have reported increased listings and buyer activity as tariffs loom, while others are doubling down on authentication services, premium offerings, and customer experience—positioning themselves as both a value alternative and a sustainable choice.

For legacy retailers and fashion brands, this growing consumer migration poses a double challenge: defending market share while navigating higher costs. Some may seek partnerships with resale platforms or invest in in-house recommerce initiatives to hedge against shifting demand.

As tariffs add fresh uncertainty to an already fractured retail landscape, the battle for the American fashion consumer is set to intensify. In a twist of irony, it may be yesterday’s fashion that best fits the future.