What: Fashion resale sector demonstrates unprecedented growth at 14% annually, with potential tariffs on imported clothing expected to drive 59% of American consumers toward secondhand shopping.

Why it is important: This shift represents a fundamental transformation in retail dynamics, as economic pressures and sustainability concerns converge to make resale a mainstream alternative to traditional retail, supported by data showing 84% of consumers embracing secondhand shopping.

The U.S. fashion resale market has emerged as a powerful force in the retail landscape, contributing $50 billion to the circular economy and growing five times faster than the broader retail clothing sector. This momentum is expected to accelerate as potential Trump tariffs threaten to increase prices across the primary market, with industry analysts projecting significant price hikes on everyday items. The American Apparel and Footwear Association estimates that 97% of U.S. clothing and shoes will be affected by tariff duties, potentially driving more consumers toward secondhand options. The impact is already visible in the market, with companies like ThredUp and The RealReal reporting strong fourth-quarter growth. The trend is particularly significant in the luxury sector, where 27% of online luxury spending now goes to secondhand fashion, challenging traditional luxury brands' revenues and forcing industry-wide adaptation to new consumer preferences.

IADS Notes: The fashion resale market's trajectory has gained additional significance amid recent trade tensions and economic pressures. As of March 2025, the global secondhand fashion market reached $100 billion, aligning with the article's reported 14% growth in the US sector. This growth becomes particularly relevant as BCG projects $640 billion in additional US import costs from tariffs, potentially accelerating the shift toward secondhand shopping. Consumer behavior already reflects this trend, with December 2024 data showing 84% of shoppers planning secondhand purchases, surpassing the article's projection of 59% considering resale options. The industry's response has been decisive, as evidenced by The RealReal's 444% stock surge and major retailers like Harvey Nichols and Bloomingdale's expanding their resale partnerships. However, the sector faces complex challenges, with April 2025 data indicating up to 75% of fashion businesses risk non-compliance with sustainability requirements while navigating tariff pressures, underscoring the article's emphasis on the need for strategic adaptation.

Fashion resale market to get a lift from Trump’s tariffs