How the President’s trade war is changing shopping habits across the globe
- Poshmark CEO Manish Chandra tells Eco Age: ‘secondhand marketplace will become an increasingly valuable’
- Fast fashion giants SHEIN and Temu have seen prices rise by up to 300% and sales drop by up to a quarter
- Resellers StockX reveals “uptick in intra-country trading”
by Karl Smith-Eloise
Donald Trump may be inadvertently helping beat climate change with his tariffs fashion industry insiders reveal.
The billionaire’s controversial import tariffs – placed on goods entering the States – have rippled through the fashion world, with Chinese fast fashion giant SHEIN and Temu forced to increase prices hitting sales.
While shoppers feel the financial pinch, environmental experts are noting what could be an important turning point for the planet.
The tariffs, a key part of Trump’s ‘America First’ agenda, have intensified trade tensions with China, affecting consumers’ wallets. With 14 percent of Chinese exports destined for American shores, the impact has been swift and widespread.
Much of the tariff-related news coverage has focused on the growing trade war between the United States and China, but what’s been more surprising is the grassroots response on social media. Manufacturers, many based in mainland China, have taken to TikTok to “expose” the truth about America’s favourite luxury products – revealing they’re manufactured far from glamorous European fashion capitals, in the same factories as fast fashion brands with significantly lower price tags.
These social media revelations have had their desired effect. American consumers are now more aware than ever of how crucial imports are to their everyday lives – and how the new tariffs are affecting their purchasing power.
Resell on the rise
As consumers tighten their belts, the secondhand market is seeing notable growth.
Discussion has focused largely on the market for new products, but – with a global circular economy now very much a part of life – it’s worth noting that tariffs have already begun to touch the secondary market too.
‘While primary retailers will likely see the biggest impacts, secondary marketplaces certainly aren’t immune to tariff-related challenges,’ a spokesperson for the resale platform StockX told Eco Age. However, StockX also notes that this isn’t the full picture.
‘As changes have gone into effect over the last few months, we’ve seen an uptick in intra-country trading. That is, buyers and sellers in the same country matching with one another for transactions,’ the platform’s spokesperson further confirmed.
The result? A significant shift towards local buying that could reduce fashion’s carbon footprint.
People are less willing to buy and sell internationally if that means paying more for products or a lower chance of those products selling. In parallel to this, however, there is a potential boon to a more localised circular economy.
When StockX matches local buyers with local sellers, they get products to buyers faster, pay out sellers sooner, and significantly reduce import duties, taxes, and high freight costs.
Poshmark CEO Manish Chandra was eager to highlight this trend, telling Eco Age: ‘As the landscape of tariffs and imports evolves, we believe the secondhand marketplace will become an increasingly valuable and cost-effective resource for American consumers.’
Accidental eco hero
In an unexpected twist, the 47th President – known for his climate change scepticism – may have unintentionally dealt a blow to fashion’s environmental impact.
Industry figures show that freight transport is responsible for eight percent of global greenhouse gas emissions – 155 million tons of CO2 by air and 657 million tons by water routes.
Temu has passed through almost all tariff increases with prices on some items rising by up to 200%.
While SHEIN’s prices have risen by up to 300 percent on some items the fast fashion retailers have already seen buyers drop off.
SHEIN posted a 23 percent week-on-week drop in US sales while Temu’s US sales fell 17 percent between April 25 to May 1 the week after tariffs were introduced.
The Chinese company added more than 300,000 styles to its app in 2023 alone – that’s over 26,000 new products every single day. According to its own impact report, SHEIN emitted 16.7 metric tons of CO2 in 2023, highlighting the massive environmental toll of fast fashion.
If, as a result of Trump’s tariffs, there’s not just a slowdown in exports to the US but in manufacturing on a global scale, that could have significant environmental benefits. Price hikes of up to 300% from fast fashion brands like SHEIN may dissuade consumers from buying clothes they only wear once if they are not so cheap.
However even eBay – the world’s largest online marketplace for pre-loved goods – is preparing for significant changes, with a spokesperson telling Eco Age: “eBay is focused on helping sellers and buyers navigate the dynamic and fluid trade policy environment.”
They added: “Our investments in shipping initiatives, combined with our global supply and extensive selection of pre-loved goods across a variety of categories, positions us well during periods of macroeconomic uncertainty.”
The green effect
Could this be the environmental victory no one anticipated?
Despite Trump’s well-known climate change denial and environmentally questionable policies, his tariffs might accidentally do more for the planet than expected.
By encouraging consumers to shop locally and consider second-hand options, these controversial measures could reduce carbon emissions and challenge polluting fast fashion businesses.
Poshmark’s Chandra certainly thinks so, stating: “Our platform enables individuals to not only find incredible value and pre-owned fashions but also to participate in the growth of circularity. By shopping from Poshmark closets or starting their own, consumers are supporting sustainability and helping strengthen the American economy.”
The global marketplace’s losses have become the local circular economy’s gain – proving that when it comes to saving the planet, sometimes the most unlikely solutions emerge from unexpected places.
Whether by air, sea, or even ground from countries like Canada and Mexico, freight transport takes a huge toll on the environment. It’s not just the production side of the fashion industry that racks up CO2 emissions but also the ways in which clothing makes its way to consumers.
If the recent price hikes lead to even a small drop in fast fashion sales, then simple supply and demand dictates a corresponding drop in production – and the environmental toll that production takes. It’s not necessarily the way environmental advocates expected this to happen, but the ends might eclipse the means where caring for the Earth is concerned.
Karl Smith-Eloise is a writer and editor based in the UK. He was worked as the EMEA Editorial Lead for HYPEBEAST and Editorial Director of FUTUREVVORLD, as a contributing editor to Highsnobiety, and for the fashion house FENDI. He now focuses exclusively on Earth-forward and ethical avenues in fashion, footwear and the broader culture.