As President Trump’s trade war continues, the U.S. secondhand clothing market is seeing unexpected gains. Tariffs on new apparel and leather goods are projected to raise prices by 65% and 87% respectively, prompting cost-conscious consumers to seek alternatives. Used clothing, largely sourced domestically, avoids many of these import duties, making resale platforms, thrift stores, and consignment shops increasingly attractive options.

Gen Z and Millennials are leading this shift. A 2024 survey found that more than 85% of Gen Z and Millenial consumers prefer pre-owned clothing. Sustainability concerns, combined with a desire for unique fashion choices, are driving their interest. Gen Z and Millennials now account for nearly two-thirds of all secondhand spending in the U.S., with Gen Z alone expected to represent 28% of total resale sales by 2027.

Industry players are adapting. Platforms like Poshmark and ThredUp are investing in technology to streamline the resale process, while brands are exploring partnerships to monetize unsold domestic inventory amid supply chain disruptions. App downloads for major resale platforms have also risen for the first time in three years, highlighting growing consumer interest.

Challenges persist. If tariffs extend to imported secondhand goods, especially from Europe, some resale businesses could face new cost pressures. However, with the secondhand market projected to reach $73 billion by 2028, resale is positioned to become a major force in the fashion industry as traditional retail grapples with rising costs and economic uncertainty.