In May 2025, the U.S. imported $556 million worth of clothing from China, a steep 30% decline from $796 million in April and the lowest monthly level in 22 years. This sharp drop reflects the impact of the 145% tariffs imposed on Chinese clothing earlier this year by the Trump administration. Although most of this data concerns new garments, the secondhand clothing sector—while smaller—is now experiencing spillover effects from these aggressive trade policies.
Tariff Pressure: How It Impacts China’s Secondhand Clothing Exporters
Although secondhand clothing is not directly targeted by recent U.S. tariff hikes, the ripple effects are increasingly being felt by exporters in China. These impacts stem from broader supply chain shifts and heightened risk perceptions surrounding Chinese goods.
- Logistics Network Disruptions
Secondhand clothing shipments often share containers and logistics infrastructure with new garments. As U.S. customs intensify inspections and detain containers linked to tariffed goods, secondhand clothing is caught in the dragnet, facing unexpected delays and customs scrutiny. - Rising Export Costs
With new apparel labeled as “high-risk,” freight companies are applying surcharges across shipments originating from China. As a result, secondhand exporters now pay higher freight rates and inflated insurance premiums, squeezing already thin margins in the used clothing trade. - Shrinking U.S. Demand
Bulk buyers in the U.S. are scaling back their overall procurement from China to avoid logistical complications and pricing unpredictability. Even though used clothing isn’t tariffed, many buyers are shifting to countries like Vietnam, Bangladesh, and Mexico, where tariffs are lower or non-existent. - Collateral Damage from Trade Tensions
To simplify operations and reduce risk, many U.S. importers are adopting a “China-exit” strategy across product categories. This trend includes secondhand goods, which are now being deprioritized in sourcing decisions — not due to quality or demand, but because of their association with a volatile supply chain.
Impact on China’s Domestic Secondhand Clothing Market
The U.S. tariffs and declining export orders have a complex, two-way influence on China’s domestic secondhand clothing sector:
1. Reduced Raw Material Supply (Potential Challenge)
China’s domestic secondhand clothing supply heavily depends on factory leftovers, unsold stocks, and returns from new garment production. With American orders shrinking, Chinese garment factories may cut production, reducing the volume of new clothing that feeds into the secondary market. This could create a short-term structural shortage of quality raw material for domestic secondhand traders.
2. Influx of Export-Grade Apparel into Domestic Market (Opportunity)
Conversely, canceled or delayed export orders lead to excess inventory flowing back into China. Many of these items are near-new or factory-standard overstock, meeting high quality and price-sensitive demands. This influx boosts the availability of premium secondhand goods domestically, benefiting online resale platforms, physical thrift stores, and live commerce sellers focusing on “high quality + affordable” product positioning.
3. Accelerating Domestic Secondhand Consumption Trends
Rising new clothing prices and stronger consumer awareness around sustainability and value drive more Chinese buyers—especially younger, price-conscious, and eco-aware demographics—to choose secondhand apparel. Platforms like Xianyu (闲鱼), Dewu (得物), Douyin live streams, and Redblin (红布林) have seen accelerated growth, supporting the social and digital transformation of China’s resale economy.
4. Policy and Environmental Support
China’s government increasingly promotes circular economy policies and green consumption, providing regulatory support and public encouragement for clothing recycling and reuse. This regulatory backdrop helps standardize and professionalize the secondhand apparel industry, encouraging branding, quality assurance, and consumer trust.
5. Export-Focused Secondhand Enterprises Seize New Chances
Secondhand companies with export capabilities are leveraging rising demand from emerging markets (Africa, Southeast Asia, Latin America) by processing and exporting higher-value, well-sorted bale clothing inventory and branded used clothing bales. This creates a robust domestic recycling-to-export cycle, maximizing resource utilization and supporting industry resilience.
China’s Strategic Response: Shifting to Emerging Markets
As the U.S. market becomes increasingly constrained by tariff-related pressures, China’s secondhand clothing exporters are proactively realigning their strategies. The focus is shifting toward emerging markets that continue to show strong, stable demand.
- Target Markets with Growing Demand
- Africa (Kenya, Nigeria, Tanzania): High demand for tropical mixes and sorted bales driven by affordability and resale potential.
- Latin America (Nicaragua, Guatemala): Price-sensitive buyers favor low-cost, bulk used clothing, where Chinese exporters remain competitive.
- Eastern Europe (Ukraine, Moldova): Demand for high-quality winterwear and consistent grading.
- Competitive Strengths of Chinese Exporters
- Advanced sorting facilities offering multiple grade options (Grade A, tropical, institutional).
- Efficient production and turnaround times ensuring steady monthly supply.
- Flexible container mixes (clothing + shoes + toys + household items) optimizing value for importers.
Benefits for Overseas Importers
As U.S. demand for Chinese secondhand clothing declines due to tariff complications, secondhand clothing importers in other global regions are gaining several competitive advantages.
1. Increased Supply Availability
Chinese second hand clothing suppliers now have more inventory — including premium grades once reserved for American bulk used clothing buyers — available for markets in Africa, Latin America, and Eastern Europe.
2. Improved Pricing Opportunities
With shrinking U.S. orders and growing competition among Chinese second hand clothing exporters, overseas second hand clothing buyers can negotiate better FOB rates, especially for full container loads of sorted used clothing or mixed bales.
3. Faster Processing and Shorter Lead Times
Reduced congestion at major Chinese ports for non-U.S.-bound shipments is enabling faster order fulfillment. Exporters are prioritizing new markets to maintain volume and turnover.
Case Example: A Guatemalan importer who previously waited 4–6 weeks for tropical mix shipments now receives goods in just 2–3 weeks — and at more favorable prices.
Forecast: Caution in U.S., Growth Abroad
While the U.S. may adjust or stabilize its tariff policies after the 2025 election cycle, most Chinese secondhand clothing exporters are not waiting for change. Instead, they are proactively pursuing growth opportunities in untapped or emerging markets.
1. Strategic Diversification
Exporters are focusing on non-tariff markets and strengthening long-term partnerships to reduce dependence on the volatile U.S. market.
2. Upgrading Offerings
To stay competitive and meet evolving buyer expectations, Chinese second hand clothing suppliers are investing in:
- Private label secondhand fashion tailored for resale boutiques
- Eco-friendly packaging to appeal to environmentally conscious retailers
- Improved grading standards for more consistent quality
3. Digital Expansion
Many second hand clothing exporters are now launching or scaling B2B e-commerce platforms to reach second hand clothing wholesalers in Latin America, Africa, and Eastern Europe with lower barriers and faster ordering systems.
Outlook: Tariffs have restricted one path, but opened multiple new global avenues for China’s secondhand clothing exporters.
Conclusion
The U.S. tariffs have undoubtedly shaken China’s dominant position in apparel exports, but the secondhand clothing sector is adapting quickly and strategically. For overseas buyers outside the U.S., this shift presents a rare opportunity to source quality used clothing from China at better prices, with faster service and more customization options than ever before.
As global demand for secondhand apparel continues to rise, Chinese second hand clothing suppliers who pivot effectively will remain key players in the evolving and expanding resale economy.
