Americans are facing a major change in how they shop. Trump’s ‘Liberation Day’ tariffs on imported goods have sent prices soaring on everything from smartphones to sneakers. With new items potentially costing more in the short term, many shoppers are turning to a surprising alternative: secondhand goods and the auction market.
“The era of cheap goods that American consumers have enjoyed for nearly 25 years before the pandemic is likely coming to an end,” says economic analyst Maya Rodriguez. “These tariffs are creating a perfect storm that’s pushing more people toward the pre-owned market.”
Understanding the Tariff Impact
In April 2025, President Trump imposed sweeping tariffs on imported goods. These include:
- A broad 10% tariff on imports from all countries
- Higher targeted tariffs on countries with large trade deficits with the US
- Steep duties on Chinese goods: 125% reciprocal tariff, a 20% tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, which further add between 7.5% and 100%.
- A 25% tariff on imported steel, aluminum, and automobiles
These tariffs directly affect the prices of everyday items. Bank of America estimates that car prices could increase by an average of $4,500. Apple products like the iPhone 16 Pro Max might see price jumps of nearly 30%, pushing the starting price from $1,200 to $1,550. In a recent update, some electrical goods from China will get a temporary reprieve.
Yale University’s Budget Lab projects these increases will cost the average American household about $4,900 in lost purchasing power.
The Secondhand Shift
As new goods become more expensive, consumers are increasingly turning to secondhand alternatives:
The Numbers Tell the Story
Even before the recent tariffs, one-third of all clothing purchased in the US was already secondhand, according to Capital One Shopping Research. This trend is now accelerating.
“We’re seeing a clear shift in consumer mindset,” says ThredUp CEO James Reinhart. “Our latest consumer survey found that 59% of shoppers, and 69% of millennials, say they’ll seek more affordable options like secondhand if government policies make new apparel more expensive.”
Who’s Leading the Charge
The move toward secondhand shopping isn’t just about necessity—it’s becoming a smart financial choice across income levels:
- Young professionals like 28-year-old marketing manager Sophia Chen are embracing the change: “I used to buy new clothes every season, but with prices jumping, I’ve found amazing designer pieces on resale sites for a fraction of what they’d cost new.”
- Middle-income families are also joining in. “With three growing kids, I’ve always shopped some secondhand,” says Detroit parent Marcus Johnson. “But now I’m finding quality used items for the whole family—everything from clothes to electronics.”
- Even luxury shoppers are exploring the secondhand market. “The prices of my favorite European brands have gone up dramatically due to the tariffs,” notes Chicago attorney Elena Vasquez. “I’ve discovered that gently used luxury items can be both financially and environmentally responsible.”
Cars: A Secondhand Surge
The automotive sector shows how dramatically tariffs can reshape buying habits:
The 25% tariff on imported vehicles has pushed new car prices even higher in an already expensive market. Industry analysts predict this could add $7,400 to the average new car price in the long run.
“We’re seeing consumers who would have purchased new vehicles now turning to the used market,” explains automotive analyst Devon Lee. “This increased demand is also driving up used car prices.”
A report from Cox Automotive predicts that as new car prices rise, the used car market will see:
- Higher demand across all price segments
- Faster turnover of inventory
- Longer retention of vehicles by current owners
- Price increases of 8-12% for popular imported models
Supply and Demand Challenges
While demand for secondhand goods is rising, supply faces potential challenges:
The Supply Question
Professor Sheng Lu, an expert in fashion and apparel studies, points out a potential problem: “If people buy fewer new items due to higher prices, there might eventually be fewer goods available for the secondhand market.”
This creates a paradox where the same factor driving demand for used goods—higher prices of new items—might eventually limit their supply.
The quality of secondhand inventory may also change. Fast fashion items, which aren’t designed to last, make up a growing portion of donations. These items often don’t hold value in the resale market.
Rising Secondhand Prices
The combination of increased demand and potentially limited supply is already affecting prices:
“We’re seeing price increases of 15-20% for popular secondhand items,” notes Maria Gomez, owner of Vintage Finds in Chicago. “Designer handbags that would have sold for $400 last year are now selling for $480 or more.”
Online platforms like Poshmark and eBay are reporting similar trends, with certain categories seeing significant price increases:
- Used electronics: Up 18%
- Designer clothing: Up 15%
- Quality children’s items: Up 22%
The Auction Market Response
The effects of tariffs are particularly evident in auction markets:
Imported Collectibles Face Challenges
Auction houses that specialize in imported antiques and collectibles are feeling the pinch. The 10-20% tariff on these items, on top of existing costs like freight and customs fees, is squeezing profit margins.
“Dealers who regularly source items from overseas for resale are having to rethink their strategies,” explains auction house owner Robert Thompson. “Some are focusing more on domestic sources, while others are simply raising their prices.”
Certain Categories See Value Growth
Not all news is bad for the auction market. Some categories of secondhand goods are seeing value appreciation:
- Rare imported collectibles already in the US (avoiding new tariffs)
- Used luxury vehicles, especially those from manufacturers facing high tariffs
- Vintage electronics and technology products
- American-made antiques and collectibles (not subject to import tariffs)
“People are bidding much more aggressively on certain items,” says Thompson. “A three-year-old luxury SUV that would have sold for $45,000 last year might now fetch $52,000 or more at auction.”
Adapting to the New Normal
Consumers and businesses are finding creative ways to navigate this changing landscape:
Smart Shopping Strategies
Savvy consumers are:
- Researching prices across both new and used markets before buying
- Focusing on quality over quantity when purchasing new items
- Learning basic repair skills to extend the life of possessions
- Using authentication services when buying high-value secondhand items
Business Evolution
Retailers and platforms are also adapting:
- Traditional retailers are launching their own resale programs
- Online platforms are improving authentication and condition reporting
- Local thrift stores are upgrading their shopping experiences
- Consignment shops are offering more competitive terms to attract quality merchandise
Looking Ahead
The shift toward secondhand shopping appears to be more than temporary:
“What we’re seeing isn’t just a short-term reaction to tariffs,” explains consumer behavior expert Dr. Jasmine Williams. “It’s accelerating a trend that was already underway. Many consumers who try secondhand shopping discover benefits beyond just saving money—like finding unique items and reducing environmental impact.”
Industry forecasts suggest the secondhand market will continue to grow, with online resale platforms projected to see 25% annual growth through 2027.
The Bottom Line
The recent US tariffs are fundamentally changing how Americans shop. As new goods become more expensive, the secondhand market and the auction marketplace are emerging as an increasingly important part of our retail landscape.
While this shift presents challenges—including potential supply constraints and rising prices even for used goods—it also creates opportunities for consumers to discover the value, uniqueness, and sustainability benefits of shopping secondhand.
For millions of Americans, secondhand is no longer second choice—it’s becoming the smart first option in our new economic reality.
References
- “The Ripple Effect of US Tariffs: Consumers and the Secondhand Auction Market.” White Paper, April 2025.
- “Trump’s tariffs threaten to end quarter-century era of cheap goods for U.S. consumers.” AP News, April 2025. https://apnews.com/article/tariffs-inflation-economy-trump-c3d7a8fb870439c5c36bb61685800323
- “State of U.S. Tariffs: April 15, 2025.” The Budget Lab at Yale University, April 2025. https://budgetlab.yale.edu/research/state-us-tariffs-april-15-2025
- “Will tariffs drive more people to shop secondhand? It’s a mixed bag, experts say.” Michigan Public Radio, April 11, 2025. https://www.michiganpublic.org/2025-04-11/will-tariffs-drive-more-people-to-shop-secondhand-its-a-mixed-bag-experts-say
- “What Trump’s Tariffs Mean for Preowned Goods and Secondhand Fashion.” Vendoo’s Blog, April 2025. https://blog.vendoo.co/what-trumps-tariffs-mean-for-preowned-goods-and-secondhand-fashion
- “Expect Used Cars to Get Pricier in the New-Car Import Tariff Era.” Car and Driver, March 2025. https://www.caranddriver.com/news/a64351714/used-cars-more-expensive-because-import-tariffs/
- “Auto tariffs could lead to fewer options, higher prices for used cars.” Detroit Free Press, March 29, 2025. https://www.freep.com/story/money/cars/2025/03/29/auto-tariffs-could-lead-to-few-options-higher-prices-for-used-cars/82703073007
- “How will people shop if everything is about to get more expensive?” Vogue Business, April 2025. https://www.voguebusiness.com/story/consumers/how-will-people-shop-if-everything-is-about-to-get-more-expensive
- “U.S. Tariffs on Antiques and Auction Items in 2025: What Buyers and Sellers Need to Know.” KC Auction Company, April 2025. https://www.kcauctioncompany.com/u-s-tariffs-on-antiques-and-auction-items-in-2025-what-buyers-and-sellers-need-to-know/
- “Auto Industry Braces for Impact: 25% Tariffs on Imported Vehicles Set to Disrupt Market.” Cox Automotive, April 2025. https://www.coxautoinc.com/market-insights/auto-industry-braces-for-impact-25-tariffs-on-imported-vehicles-set-to-disrupt-market/