Cheap things from China are poised to get pricey. Secondhand retailers are ready to take advantage

Retailers are freaking out over tariffs.

Retailers are freaking out over tariffs. President Donald Trump’s tariffs, if enacted after the 90-day suspension, will impact some of the biggest textiles exporters, including Bangladesh, Vietnam and Pakistan. The United States Fashion Industry Association — a trade organization representing the interests of importers, wholesalers and major retailers from Urban Outfitters to Walmart — said its industry “depends on global supply chains more than perhaps any other sector of manufactured goods.” And the tariffs have come directly for fast fashion, which has become a major segment of the American clothing market in the past decade. Shein and Temu make up 17% of the discount US market, according to a congressional report on China’s e-commerce exports. The “de minimis exemption,” which allows packages worth less than $800 to enter tax-free into the United States, will be canceled for shipments from China starting May 2. The Trump administration has now implemented a tariff of 120% on those goods (or a “per postal item” cost of $100 starting May 2, which goes up to $200 on June 1). One retailer is celebrating, however. In a statement last week, online consignment and thrift store ThredUp said it “applauds” the closure of the de minimis exemption for China, saying it “provided an unfair advantage to fast fashion retailers.” “We believe that making fast fashion more expensive will incentivize consumers to choose… secondhand options” instead, said the company, which reported $322 million in annual revenue and 1.8 million active buyers in 2023.