Despite widespread concerns about the potential for a recession due to President Trump’s trade policies, the “slow fashion” movement could benefit.
Slow fashion promotes environmentally friendly and ethical retail practices, such as buying secondhand items. It involves a greater awareness of the impact of products on workers, communities, and ecosystems, as Kate Fletcher described in the Ecologist in 2007.
Fast fashion, which prioritizes low costs and rapid shipping for inexpensive, short-lived items, has historically overshadowed slow fashion. The Ellen MacArthur Foundation estimates that clothing production will triple from 2017 to 160 million tonnes by 2050. Many Gen Z consumers shop at companies like and , and over a third make monthly purchases from TikTok Shop.
However, the fast fashion industry faced challenges on April 2 due to additional tariffs on Chinese goods and a new rule signed by President Trump.
The elimination of the “de minimis exemption” for goods from China and Hong Kong, effective May 2, closes a loophole that allowed companies like Shein and Temu to send millions of packages to the U.S. without duties. This exemption previously waived customs declarations and duties for small packages valued at $800 or less shipped directly to consumers. According to the Congressional Research Service, the number of these small, duty-free shipments from China increased by 1,145% between 2018 and 2023.
Resale companies believe that the de minimis exemption has fueled the affordability and ease of fast fashion, hindering the wider adoption of slow fashion.
GoodwillFinds CEO Matt Kaness told Glossy that resale companies view fast fashion as their main competition because of its low prices, poor quality, and negative environmental impact.
Now, resale companies may have an advantage.
Venturen advisor Luca Cipiccia noted on LinkedIn that resale companies are relatively insulated from the broader Trump tariffs because they do not rely on global supply chains for sourcing. ThredUp’s chief strategy officer, Alon Rotem, told Trellis that their clothing comes from the closets of Americans.
While shares of most retail companies fell after Trump announced tariffs on goods from China, Vietnam, Cambodia, Indonesia, and Bangladesh, The RealReal has largely withstood the impact, and ThredUp’s shares have slightly increased since April 2. The SPDR S&P Retail ETF fell 8% last Thursday; , , and PDD Holdings, which owns Temu, also saw their stock .
ThredUp CEO James Reinhart called the end of the de minimis exemption for China a long overdue “leveling of the playing field.” The company stated that this policy is a win for both the environment and the future of sustainable fashion because the de minimis loophole has given fast fashion retailers an unfair advantage by allowing them to flood the market with cheap, short-lived items while avoiding import duties.
