Business
Secondhand stores poised to benefit if US tariffs drive up new clothing costs
Bags of returned or overstocked clothing, shoes, boots, coats, packs and other items sit in a fulfillment warehouse after the goods were cleaned or repaired as they are marketed on resale platforms on April 17, in Englewood, Colo. (AP)
NEW YORK, April 21, (AP): Stores selling secondhand clothes, shoes and accessories are poised to benefit from President Donald Trump’s trade war even as businesses the world over race to avert potential damage, according to industry experts. American styles carry international influence, but nearly all of the clothing sold domestically is made elsewhere. The Yale University Budget Lab last week estimated short-term consumer price increases of 65% for clothes and 87% for leather goods, noting US tariffs “disproportionately affect” those goods.
Such price hikes may drive cost-conscious shoppers to online resale sites, consignment boutiques and thrift stores in search of bargains or a way to turn their wardrobes into cash. Used items cost less than their new equivalents and only would be subject to tariffs if they come from outside the country. “I think resale is going to grow in a market that is declining,” said Kristen Classi-Zummo, an apparel industry analyst at market research firm Circana.
“What I think is going to continue to win in this chaotic environment are channels that bring value.” The outlook for preowned fashion nevertheless comes with unknowns, including whether the president’s tariffs will stay long enough to pinch consumers and change their behavior. It’s also unclear whether secondhand purveyors will increase their own prices, either to mirror the overall market or in response to shopper demand.
Jan Genovese, a retired fashion executive, sells her unwanted designer clothes through customer-to-customer marketplaces like Mercari. If tariffs cause retail prices to rise, she would consider high-end secondhand sites. “Until I see it and really have that sticker shock, I can’t say exclusively that I’ll be pushed into another direction,” Genovese, 75, said. “I think that the tariff part of it is that you definitely rethink things.
And maybe I will start looking at alternative venues.” The secondhand clothing market already was flourishing before the specter of tariffs bedeviled the US fashion industry. Management consulting firm McKinsey and Co predicted after the COVID-19 pandemic that global revenue from preowned fashion would grow 11 times faster than retail apparel sales by this year as shoppers looked to save money or spend it in a more environmentally conscious way.
US President Donald Trump speaks to reporters in the rain after arriving on Air Force One at Joint Base Andrews, Md on May 30. (AP)
WEST MIFFLIN, Pa, May 31, (AP): US President Donald Trump on Friday told Pennsylvania steelworkers he’s doubling the tariff on steel imports to 50% to protect their industry, a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. In a post later on his Truth Social platform, he added that aluminum tariffs would also be doubled to 50%. He said both tariff hikes would go into effect Wednesday.
Trump spoke at US Steel’s Mon Valley Works-Irvin Plant in suburban Pittsburgh, where he also discussed a details-to-come deal under which Japan’s Nippon Steel will invest in the iconic American steelmaker. Trump told reporters after he arrived back in Washington that he still has to approve the deal. “I have to approve the final deal with Nippon and we haven’t seen that final deal yet, but they’ve made a very big commitment and it’s a very big investment,” he said.
Though Trump initially vowed to block the Japanese steelmaker’s bid to buy Pittsburgh-based US Steel, he reversed course and announced an agreement last week for “partial ownership” by Nippon. It’s unclear, though, if the deal his administration helped broker has been finalized or how ownership would be structured.
Nippon Steel has never said it is backing off its bid to outright buy and control US Steel as a wholly owned subsidiary, even as it increased the amount of money it promised to invest in US Steel plants and gave guarantees that it wouldn’t lay off workers or close plants as it sought federal approval of the acquisition. “We’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,” Trump said as he opened an event at one of US Steel’s warehouses.
“You’re going to stay an American company, you know that, right?” As for the tariffs, Trump said doubling the levies on imported steel “will even further secure the steel industry in the US.” But such a dramatic increase could push prices even higher. Steel prices have climbed 16% since Trump became president in mid-January, according to the government’s Producer Price Index.
Kuwait’s Minister of Finance Noura Al-Fassam in a group photo.
KUWAIT CITY, May 29: The Ministry of Finance said it won the third edition of the Sharjah Award for Public Finance (2024-2025) in recognition of its outstanding role in providing financial services. Representatives of 17 countries vied for the award, the Ministry noted in a press release on Wednesday. Minister of Finance Noura Al- Fassam stated that winning this award reflects the ministry’s efforts in improving the efficiency of financial performance and enhancing the quality of services provided. The ministry confirmed that it is continuing to develop financial services under directives from the Council of Ministers towards digitizing services. The statement added that Al-Fassam received the award on behalf of the ministry, which participated in the digital payment project for government services that enables government entities to purchase online, pay government fees, and meet various needs to fulfill their financial obligations. (KUNA)
Kuwait’s Finance Minister Noura Al-Fassam with Google Cloud’s Vice President of Customer Engineering for the Middle East, Africa and Europe Chris Lindsay in a group photo.
KUWAIT CITY, May 29: Kuwait’s Finance Minister Noura Al-Fassam held talks on Wednesday with Google Cloud’s Vice President of Customer Engineering for the Middle East, Africa and Europe Chris Lindsay, focusing on efforts to push forward a national digital drive. The digital transformation, including a transition into a cloud-based financial system that guarantees more “flexibility and transparency,” represents the focal point of economic reforms in Kuwait, according to a finance ministry statement.
Kuwait’s finance ministry will be among the first state bodies to make the transition into a digital system, which is a testament to its “commitment” to employ cutting-edge technology, such as Artificial Intelligence tools, in a bid to improve the quality of its services, the statement underlined. The talks come as part of the “strategic partnership” agreement between Kuwait and the US tech giant, which aims to develop advanced digital infrastructure across all state bodies, added the statement. It went on to espouse the merits of a full-fledged digital transformation, citing streamlined processes, data-driven decision-making and greater efficiency as chief among those benefits.(KUNA)
One person injured in an apartment fire caused by gas leak in Abu Halifa
Trump tells US steelworkers he’s going to double tariffs on foreign steel to 50%
Cafés And Car Dealerships Shut Down In Inspection Sweep
-
Politics23 hours agoFirefighting Teams Tackle Basement Fire in Shuwaikh
-
Politics13 hours agoCafés And Car Dealerships Shut Down In Inspection Sweep
-
Politics58 minutes agoOne person injured in an apartment fire caused by gas leak in Abu Halifa
-
Business1 hour agoTrump tells US steelworkers he’s going to double tariffs on foreign steel to 50%