As tariffs continue to increase, American consumers are feeling the pinch with rising prices on everyday items. A recent survey reveals that a significant 86% of Americans are bracing for price hikes due to higher tariffs. Many are already planning to adjust their spending habits to cope. According to a report by Bid-on-Equipment, 67% of consumers intend to change how they shop in response to these rising costs. Notably, 46% mentioned they would consider thrift or secondhand stores. Other strategies include comparison shopping and reducing purchases of imported goods. This survey gathered responses from over 1,000 adults in January.
Exploring the personal finance landscape further, a survey by the shopping app Smarty indicated that 50% of respondents might lean towards buying secondhand goods or opting for local alternatives due to the tariffs. “There’s a lot of uncertainty initially,” explained Vipin Porwal, Smarty’s founder. “But as the reality of tariffs sets in, savvy shoppers will be looking for more ways to save and maximize rewards.”
In line with this trend, a ThredUp report highlights the growing interest in secondhand shopping. Over half of the respondents, 55%, said that if the economy doesn’t pick up, they’ll allocate more of their clothing budget to pre-owned items. James Reinhart, ThredUp’s CEO, noted, “In an era marked by tariffs and inflation, this trend is only set to intensify.” The findings, supported by GlobalData research, also revealed that 60% of consumers consider thrifted clothing to offer the best value, based on a December 2023 survey of over 3,600 adults.
Turning to the impact of tariffs on consumers, Shawn Grain Carter, an associate professor at the Fashion Institute of Technology, remarked, “Tariffs essentially act as a tax on consumers.” Popular brands like Shein and Temu, which import products from China, could see price increases that will likely trickle down to customers. Furthermore, President Donald Trump’s revocation of the de minimis tax loophole—previously allowing duty-free imports on items under $800—marks a significant policy shift. Ann Cantrell, another associate professor at FIT, described this as a “major change.”
Despite these challenges, the recommerce industry is booming. In 2023, a whopping 85% of respondents cited “saving money” as their main reason for thrift shopping, according to a 2024 report by Capital One. On average, thrifters save $1,760 annually by purchasing secondhand goods. The stigma once associated with buying used items has largely diminished, as more consumers are drawn to the value and sustainability of recommerce. In fact, by 2029, the recommerce market is expected to grow 55%, reaching $291.6 billion and outpacing traditional retail, according to OfferUp. Currently, 76% of transactions involve items beyond just clothing, including electronics, furniture, and more.
However, the convenience of secondhand shopping has its limits, according to Steven Conners, founder of Conners Wealth Management. “We’re living in a convenience-driven economy, heavily influenced by the likes of Amazon. I don’t foresee secondhand goods becoming the predominant choice anytime soon,” he commented.
For those venturing into secondhand retail, experts advise prioritizing the quality of the goods. Consumer savings expert Andrea Woroch suggests exploring local platforms like Facebook Marketplace for larger items like furniture, which can be costly to ship. However, it’s wise to steer clear of large household appliances from individual sellers, due to potential functionality issues, and instead seek certified refurbished models from reputable retailers like Amazon Renewed.
In the world of secondhand clothing, savings might not always be substantial. Woroch cautions that the prices of gently used clothes can sometimes be equivalent to sales on new items at the season’s end from regular retailers. However, there could still be “better value propositions” in resale stores, according to FIT’s Grain Carter. To truly maximize your spending, she advises considering the four C’s: cut, construction, craftsmanship, and condition. Paying attention to these elements ensures that a garment not only stands the test of time but continues to do so for years to come.
