As sweeping tariffs under President Trump’s administration drive up the cost of imported goods, American consumers are increasingly turning to secondhand markets for relief. From clothing to cars, the resale economy is experiencing a notable shift, reflecting broader economic and behavioral trends.
Tariffs Trigger a Surge in Secondhand Shopping
The U.S. has imposed significant tariffs, including a 145% levy on Chinese imports, affecting a vast array of consumer goods. This move has led to substantial price increases, with the Yale University Budget Lab estimating short-term consumer price hikes of 65% for clothing and 87% for leather goods. Consequently, consumers are seeking more affordable alternatives, propelling the secondhand market into the spotlight.
In San Francisco, for instance, thrift stores like Buffalo Exchange have reported increased business following the tariff implementations. This trend is not isolated; nationwide, platforms such as Poshmark, ThredUp, and Depop are experiencing heightened activity as consumers look to stretch their budgets without sacrificing quality.
Demographic Shifts: Millennials and Gen Z Lead the Way
Younger generations are at the forefront of this shift. A report by ThredUp indicates that 59% of consumers plan to seek more affordable options like secondhand if tariffs make apparel more expensive, with this figure rising to 69% among Millennials. These demographics are not only more price-conscious but also more environmentally aware, viewing secondhand shopping as both an economical and sustainable choice.
Automotive Market: Used Cars in High Demand
The automotive sector is also feeling the impact. A 25% tariff on imported vehicles is expected to push more buyers toward used cars. However, with used-vehicle supplies still low, prices in this segment are anticipated to rise as well. Analysts predict that annual auto sales in the U.S. and Canada could decline by approximately two million units due to these tariffs, according to Reuters.
Economic Implications and Consumer Behavior
The ripple effects of rising tariffs are reaching deep into the U.S. economy, reshaping consumer habits and challenging household finances. According to a recent analysis by Yale University’s Budget Lab, the average effective U.S. tariff rate now sits at 22.5% — the highest level in over a century. This elevated rate is not just a macroeconomic marker; it translates directly into price hikes that households are already contending with. The same report estimates a 2.3% rise in the consumer price level and a $3,800 loss in annual real income for the average U.S. household in 2024 alone.
Such price pressure is reshaping the landscape of American consumer behavior. Historically, price sensitivity has spurred demand for discount and resale markets, but the current trend is more pronounced and widespread. A survey conducted by Forest Shipping, a global logistics platform, found that 49% of U.S. consumers are actively reducing their spending and turning to used goods as tariffs inflate prices on new imports.
The psychological aspect of consumer sentiment is also shifting. Whereas secondhand purchases once carried a stigma, today they are increasingly viewed as both financially prudent and environmentally responsible. This dual rationale is particularly appealing in the current inflationary context, where even middle-income earners are facing budgetary constraints. According to the ThredUp 2025 Resale Report, secondhand retail is projected to grow 9 times faster than the broader retail sector through 2030, suggesting this isn’t a short-term adaptation but a durable market shift.
Additionally, businesses across the retail spectrum are adjusting their strategies. Major retailers like Walmart and Target are expanding their discount sections, while e-commerce platforms are investing in recommerce infrastructure. Amazon, for example, has expanded its “Amazon Warehouse” section for returned and refurbished items, likely anticipating sustained demand for lower-cost alternatives as tariffs persist.
These developments reflect a broader recalibration of what constitutes value in the consumer marketplace. As tariffs continue to exert upward pressure on prices, the appeal of secondhand goods is likely to grow not only as a budgetary measure but as a normalized, mainstream choice.
Conclusion: A Resale Renaissance
The escalating cost of living, driven by aggressive tariff policies, is doing more than denting wallets—it’s reshaping how Americans consume. As import duties push prices of everyday goods beyond the reach of many households, consumers are responding not with short-term belt-tightening but with structural shifts in purchasing behavior. The surge in secondhand buying is no longer limited to thrift-savvy subcultures or environmentally minded consumers. It has evolved into a strategic and rational response to a constrained economic environment.
The implications of this pivot are profound. Retail is undergoing a quiet transformation where resale is not only normalized but increasingly prioritized. Moreover, the secondhand boom reveals a deeper consumer insight: value is no longer solely defined by “newness.” In a high-tariff economy, durability, cost-effectiveness, and ethical sourcing are gaining prominence. This may mark a long-term shift toward more conscious and resilient consumption models, with the resale economy playing a central role.
