Thrift stores could see business boom as tariffs hike clothing prices
(NewsNation) — As tariffs threaten to raise prices on everything from groceries to apparel, secondhand stores and resale platforms are poised to see a surge in business.
Since nearly all clothing sold in the United States is imported, tariffs are expected to hit apparel particularly hard.
Many Americans are already seeing emails from retailers warning of upcoming price hikes and shortages, but some cost-conscious consumers are turning to thrift shops and online resale platforms to stretch their budgets.
What will become more expensive as tariffs take effect?
The Yale University Budget Lab estimates short-term consumer price increases of 65% for clothes and 87% for leather goods like shoes, handbags and belts, noting U.S. tariffs 'disproportionately affect' those goods.
The secondhand market has already been booming, growing from a $20 billion industry in 2017 to a projected $60 billion in 2025, even before the tariffs take full effect.
Apparel is expected to lead the resale boom, followed by books and furniture, according to Yale.
A dozen states sue the Trump administration to stop tariff policy
Whitley Adkins, a fashion and wardrobe stylist, said while secondhand websites like Poshmark, Facebook Marketplace and eBay are seeing more interest, consumers are discovering that thrifting is often a way to find higher-quality goods.
'People thrift to save money, right? That's the first thing you think when you hear the word thrifty: you're going to save money. But I think people may or may not know that oftentimes, when you thrift, you not only save money, but you find things that are higher quality,' Adkins said.
A 10% tariff has been placed on goods from most countries; however, most U.S. clothing imports come from Bangladesh, Vietnam and China, where tariffs range from 37% to 145%.
Rental clothing services like Rent the Runway and Nuuly are also expected to see an increase in business. But small U.S. businesses that rely on foreign goods are likely to face a serious challenge due to rising costs.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
38 minutes ago
- CNBC
Oil prices tick up on worries of escalating U.S.-Iran tension
Oil prices edged higher on Thursday to their highest in more than two months, after U.S. President Donald Trump said U.S. personnel were being moved out of the Middle East, which raised fear that escalating tensions with Iran could disrupt supply. Brent crude futures rose 15 cents, 0.2%, to $69.92 a barrel at 1230 am GMT, while U.S. West Texas Intermediate crude 22 cents, 0.3%, to $68.37. Both Brent and WTI surged more than 4% to their highest since early April on Wednesday. Trump on Wednesday said U.S. personnel were being moved out of the Middle East because "it could be a dangerous place," adding that the United States would not allow Iran to have a nuclear weapon. Reuters reported earlier on Wednesday that the U.S. is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations around the Middle East due to heightened security risks in the region, according to U.S. and Iraqi sources. Iraq is OPEC's No. 2 crude producer after Saudi Arabia. A U.S. official said military dependents could also leave Bahrain. Meanwhile, Iran's Minister of Defense Aziz Nasirzadeh said Tehran will strike U.S. bases in the region if nuclear talks fail and conflict arises with Washington. Trump has repeatedly threatened Iran with bombing if it does not reach a new nuclear deal. Optimism around a trade deal between the U.S. and China, which could boost energy demand in the world's two biggest economies, also buoyed oil prices. In the U.S., crude inventories fell by 3.6 million barrels to 432.4 million barrels last week, the Energy Information Administration said. Analysts polled by Reuters had expected a draw of 2 million barrels.
CNBC
39 minutes ago
- CNBC
Gold climbs on rising Middle East tensions, weaker dollar
Gold prices rose on Thursday, bolstered by rising tensions in the Middle East and a weaker dollar, while softer-than-expected U.S. inflation data boosted expectations of Federal Reserve rate cuts. Spot gold was up 0.7% at $3,375.06 an ounce, as of 0343 GMT. U.S. gold futures gained 1.5% to $3,395. The U.S. dollar index fell to a near two-month low, making greenback-priced bullion more attractive to overseas buyers. The weakness in the dollar index serves as a strong catalyst, said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA, adding that a "bullish breakout" of the $3,346 resistance triggered technical buying. Rising geopolitical risks aided safe-haven assets, with President Donald Trump announcing on Wednesday that U.S. personnel were being moved out of the Middle East due to heightened security risks amid rising tensions with Iran. Meanwhile, U.S. consumer prices increased less than expected in May, driven by cheaper gasoline, though inflation could accelerate due to import tariffs. The data prompted renewed calls from Trump for significant rate cuts. "We could potentially see the Fed moving more quickly than anticipated, given the CPI data, which is not particularly alarming at this juncture," Wong said. Traders now expect 50 basis points of rate cut by year-end. U.S. producer price index data is due at 1230 GMT. Meanwhile, Trump said on Wednesday that Washington and Beijing had agreed on a framework to restore a fragile truce in the U.S.-China trade war, potentially avoiding higher tariffs. Trump added he could extend a July 8 deadline for trade talks with other nations before higher U.S. tariffs take effect but did not foresee such a need. Elsewhere, spot silver was up 0.4% at $36.38 per ounce, platinum rose 1.3% to $1,272.50, still hovering near a more than 4-year high, while palladium was down 1% at $1,068.92.
CNBC
39 minutes ago
- CNBC
Dollar slides on easing trade tensions, Federal Reserve expectations
The dollar slid on Thursday on further signs that U.S. President Donald Trump may adopt a softer stance in tariff negotiations and heightened expectations of Federal Reserve rate cuts. Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries before higher U.S. tariffs are imposed. U.S. Treasury Secretary Scott Bessent suggested earlier that the Trump administration may offer extensions from a July trade deal deadline for countries negotiating in good faith. The remarks renewed dollar weakness, lifting the euro to a seven-week high. It last bought $1.1525. The greenback lost 0.43% against the yen and 0.34% against the Swiss franc to last trade at 143.98 and 0.81725, respectively. Against a basket of currencies, the dollar fell to its weakest since April 22 at 98.327. "It's hard to tell whether there is a masterplan behind this, but common sense would suggest that President Trump is trying to create a level of urgency in terms of trade negotiations," said Rodrigo Catril, senior currency strategist at National Australia Bank. "I think the market, in terms of the size of the moves, is becoming a little bit more sanguine about what this all means... the market is also very wary that the picture could change quite dramatically in a week's time or two weeks' time." Elsewhere, sterling was up 0.38% to $1.3588. The Australian dollar ticked up 0.05% to $0.6506, while the New Zealand dollar rose 0.1% to $0.6033. On Wednesday, data showed U.S. consumer prices rose less than expected in May, leading traders to ramp up bets of a Fed cut as early as September and keeping pressure on the dollar. Thursday's producer price index data will be the next test for markets. The offshore yuan was last a touch stronger at 7.1953 per dollar, helped slightly by news that a fragile truce in the U.S.-China trade war was restored as both sides reached a deal following talks in London this week. "Full details have not been published, and it remains unclear if the talks brought the two largest economies closer to productive cooperation," said Mantas Vanagas, senior economist at Westpac. The euro was clinging to strong gains on Thursday, having jumped against most other currencies in the previous session. Against the yen, the common currency last stood at 165.88 having risen to its firmest since October at 166.42 on Thursday. It was up 0.13% against the Aussie, extending a 0.9% gain from Thursday, and had also touched a one-month high of 84.88 pence overnight. While there was no immediate trigger behind the moves, analysts say the euro has over the past week drawn support from hawkish European Central Bank (ECB) rhetoric. Last week, the ECB cut interest rates as expected but hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target. "Expectations of fewer previously expected ECB rate cuts have lent some support to the euro," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. That contrasts with the likely resumption of a Fed easing cycle later this year, and as Trump has repeatedly called for U.S. rates to be lowered. Trump said last week that a decision on the next Fed chief will be coming soon, adding that a good Fed chair would lower interest rates. The euro has risen nearly 11% for the year thus far, helped in part by a weaker dollar and as investors pour money into European markets in a move away from the U.S.
