Surge in Tariffs Affects Secondhand Market as Consumers Voice Concerns
Last month, Atlanta resident Suzanne Smith-Darley experienced a mix of excitement and disappointment in the secondhand market. After purchasing a pre-owned Chanel handbag from a Japanese seller on eBay for $800—significantly below the original retail price of $1,400—her enthusiasm quickly turned to frustration. A subsequent email from DHL informed her of a $142 tariff fee required for the delivery of her much-anticipated item. “This bag has traveled a long way and could have ended up in the trash. Now, I face this hefty charge,” Smith-Darley remarked. “It’s absurd.”
Impact of Tariffs on Secondhand Goods
The tariffs imposed this year by the Trump administration have led to rising prices and reduced choices in the marketplace. Many consumers have been taken aback to discover that taxes now also apply to secondhand items. In response, various online marketplaces, including eBay and Vestiaire Collective, have started advocating for lawmakers in Washington, D.C., to exempt secondhand goods from these import duties.
Rachel Kibbe, the CEO of American Circular Textiles—a coalition comprising approximately 30 organizations that focus on the resale, recycling, and refurbishment of garments—stated, “We are still an emerging industry, but we represent the future. Our goal is to receive preferential trade treatment for secondhand imports.”
Exemption for Used Goods Unlikely
Despite these efforts, sources close to the White House indicate that a tariff exemption for used items is unlikely. Implementing such a measure might lead importers to misrepresent new goods as secondhand, complicating enforcement for a government already under pressure due to efficiency initiatives introduced by the Trump administration.
Historically, the United States has levied tariffs on a variety of imported goods, including pre-owned items like ancient jewelry and outdated electronics. However, the Trump administration has widened the scope of tariffs, affecting a larger number of countries and raising rates to unprecedented levels. This has prompted significant debate about the efficacy of tariffs, with increasing demands for reconsideration.
Experts Weigh In on Tariff Strategy
Syracuse University historian Andrew Wender Cohen, who specializes in trade history, emphasized, “This situation is unique. We haven’t witnessed such a comprehensive application of tariffs before.” President Trump has characterized his tariff policies as pivotal for boosting domestic manufacturing. While elevating import fees could potentially encourage some companies to relocate portions of their production to the U.S., applying these same tariffs to used goods—items meant for resale and not landfill disposal—raises questions about their practical benefits.
Cohen suggests a balanced approach: maintaining tariffs on secondhand goods but at lower rates that align with the actual risk posed to domestic manufacturing.
The Necessity of Secondhand Items
For many consumers, certain secondhand items simply have no modern equivalents. Some products may be discontinued or the new options available may not meet their needs. This has created a demand for niche items, such as vintage trading cards and pre-owned designer handbags. Advocates for a circular economy argue that reusing items, even when crossing international borders, can provide environmental benefits by reducing waste. Liisa Jokinen, founder of the vintage clothing app Gem, believes there should be policies that prioritize the purchase of used items.
Growth of the Circular Economy
As consumers increasingly seek sustainable options, a new supply chain focused on refurbished goods has begun to emerge. Retailers are now dedicated to refurbishing and reselling secondhand items, ranging from clothing to electronics. The rise of online marketplaces has also facilitated access to these products from around the globe.
Earlier this year, eBay’s Japanese division reported a sharp increase in demand for secondhand cameras as consumers rushed to make purchases before the tariffs were implemented. Notably, around 40 percent of eBay’s global sales now stem from what the company categorizes as “pre-loved and refurbished items,” underscoring the evolving landscape of consumer preferences.
This article underscores the serious implications of U.S. tariff policies on the secondhand market, shedding light on consumer frustrations and the ongoing advocacy for change in tariff regulations. As the demand for sustainable products rises, it remains crucial for both consumers and policymakers to navigate these complexities effectively.
