©annastills via Canva.com
The onslaught of tariffs and the closing of the de minimis loophole is expected by many to be a boon to resale platforms and secondhand sales overall, but the gains may face limits.
On its first-quarter analyst call in early May, James Reinhart, ThredUp’s CEO, said that by far the biggest benefit to resale selling is the closing of the de minimis loophole that weakened the value proposition of sites like SHEIN and Temu.
He believes the de minimis loophole won’t likely return. He said, “Duty-free ultra-fast fashion that has flooded the U.S. market over the past few years undoubtedly put some pressure on our price competitiveness. We believe the closure of the de minimis exemption is likely to cause higher prices for these goods and to reduce production volumes, both of which could be a positive for ThredUp.”
Reinhart also believes that moves by SHEIN and Temu to cut their advertising spend on Meta and Google platforms should reduce customer acquisition costs.
He estimates the tariffs may be more temporary, but they still offer a near-term tailwind. Reinhart said, “If the price of new clothing goes up because of these tariffs, we believe this enhances the comparative value proposition for consumers who shop for used clothing on ThredUp.”
Finally, he noted that demand for resale had been “accelerating” prior to the trade disruptions, also driven by eco-consciousness and the appeal of finding one-of-a-kind items.
ReturnPro's “The State of Consumer Returns” 2025 report found more than half (55%) of U.S. consumers would be more likely to buy from the secondary market to help offset rising costs due to tariffs. Quality uncertainty and return/refund policies were found to be the top concerns around used purchases.
Supply rather than demand may be a bigger hurdle for resellers.
Shawn Grain Carter, professor of Fashion Business Management at FIT, told Elle that with consumers likely holding onto their apparel to save money amid possibly broader inflationary pressures, resale sites are “not going to be able to get the supply that they need to keep everything fresh.”
On a podcast, eMarketer Senior Analyst Sky Canaves said supply has already been an issue with the flood of resale platforms arriving, creating pressures to reduce seller fees. She said, “The platforms are really trying to create better incentives for consumers to sell on them.”