Immigration raids disrupt US second-hand clothing supply chains

Heightened immigration enforcement in southern US border states is causing labour shortages, inventory backlogs and shipment delays in the second-hand clothing sector, shows data from Bank and Vogue, a global leader in the facilitation, logistics, purchase and reselling of wholesale used goods. The delays are raising concerns over the stability of a supply chain that underpins much of the global reuse market.

Operators in hubs such as Laredo, McAllen, Hidalgo and Houston report a sharp drop in workforce availability following an uptick in Immigration and Customs Enforcement (ICE) activity. The second-hand clothing trade, covering everything from charity shop donations to bulk exports of sorted and baled textiles, relies heavily on migrant labour, often employed informally or through precarious arrangements.

Industry sources say that even unconfirmed reports of raids are deterring workers from warehouses, sorting facilities and transportation roles. “As labour availability drops, the whole system begins to seize up,” said a Texas-based processor, pointing to slower collection rates, reduced warehouse throughput and growing piles of unsorted goods.

The operational impact is already visible. With fewer workers to sort and bale incoming donations, credential clothing is accumulating in warehouses, delaying exports to resale markets in Latin America, Africa and Eastern Europe. These delays risk constraining cash flow for exporters and creating volatility in global second-hand clothing prices, which depend on steady volume and quick turnaround.

The US exports roughly 700,000 tonnes of used clothing annually, according to UN Comtrade data, with much of that flow channelled through border-state hubs. The current slowdown threatens not only exporters but also overseas markets reliant on these imports for affordable apparel supply.

Some operators in enforcement hotspots are scaling back collection routes, delaying deliveries and reducing purchase volumes to avoid operational and legal risks. While intended to target undocumented migration, the intensified enforcement is in effect disrupting a key link in the fashion industry’s circular economy—one that diverts textiles from landfill and extends the life cycle of garments.

Circular fashion advocates, including Bank & Vogue, argue that migrant labour is integral to keeping the reuse industry viable. Without it, they warn, environmental and economic benefits will be undermined. Businesses are being advised to diversify intake channels, strengthen communication with partners and coordinate closely with inventory managers to navigate the disruptions.

For the global resale trade, the episode underscores a structural vulnerability: a dependence on low-paid, insecure labour at a time when political and policy shifts can shut down supply lines overnight. In an industry where speed and scale determine profitability, that vulnerability now looks like a strategic risk.