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Why New Yarn and Textiles Are Getting Pricier — And How Thrift Stores Like Yarn Saver Remain Immune

If you’ve noticed new clothes, yarn, or other textiles getting pricier lately, you’re not imagining things. One often overlooked reason is tariffs – taxes on imported goods – that the United States places on textile products coming from abroad. These import tariffs can raise the cost of everything from T-shirts to yarn. Traditional retailers are feeling the squeeze, which often means higher price tags and tough inventory decisions for them. Meanwhile, online thrift stores (like Yarn Saver, a site for secondhand yarn) aren’t affected by these tariffs because they resell existing goods. The result? Shoppers can find affordable, sustainable, and accessible alternatives. Let’s break down what’s going on.

Understanding Tariffs on Imported Textiles

Tariffs are taxes placed on products when they enter the country. For textiles (clothing, fabric, yarn, etc.), the U.S. has long charged import duties – sometimes 10% to 15% or more on apparel – to protect domestic industries or as leverage in trade deals. But 2025 brought a major jump.

Shopper picking yarn from a higher shelf in a retail store metal wire basket while determining what to purchase after the increase in tariffs on general shopping within the United States.
Photo by Jonathan Cooper

In April 2025, the Trump administration announced sweeping “Liberation Day” tariffs under a law called the International Emergency Economic Powers Act (IEEPA). These tariffs targeted major manufacturing countries with steep new duties. Vietnam was hit with a 46% tariff, Cambodia 49%, Bangladesh 37%, Indonesia 32%, and China faced a huge 145% rate.¹ These came on top of existing duties, greatly increasing the cost to import textile products.

History of Tariffs Since the New Administration

Tariffs have been all over the place throughout 2025. The average tariff on apparel and footwear imports to the U.S. jumped from around 13% in early 2025 to 54% in spring 2025. It later settled at about 36% by fall — still well above normal levels.² The average tariff rate for U.S. apparel imports reached 26.4% by July 2025, nearly double the 14.7% rate from January 2025.³

The situation keeps changing. Lower courts ruled in 2025 that the tariffs were illegal under IEEPA, but the import taxes stayed in place while the Trump administration appealed to the Supreme Court.⁴ The Court heard arguments in November 2025, and observers noted the justices seemed doubtful that the president had the power to set tariffs on his own under the emergency powers law.⁵ A ruling is expected in early 2026, and many legal experts think the Court may reduce or even fully remove the tariffs.²

In the meantime, the tariffs have had very real effects. Industry analysts estimate that if the 2025 tariffs stay in place, total tariff duties on textile and apparel imports could reach nearly $35 billion — an increase of almost $20 billion compared to before.⁶ According to the Yale Budget Lab, consumers faced short-term clothing price increases of around 37%, with prices expected to stay 17-18% higher even in the long run.⁷

Higher Costs and Leaner Inventory

Traditional retail brands and stores – from big-box retailers to local boutiques – rely heavily on imported inventory. In fact, the U.S. imports roughly 97% of its apparel and footwear from other countries.⁸ When tariffs drive up the cost of those imports, retailers have to decide: absorb the expense or pass it on to consumers. In most cases, at least some of that cost gets added to the price tag.

The impact has been big. Between January and July 2025, U.S. apparel prices rose 1.3%, and 55% of fashion executives expect more increases in 2026.² Major brands like Nike, Hermès, and Ralph Lauren have been open about raising prices.² A Mintel report found that 63% of adults worry that tariffs could push clothing prices out of their reach.⁹

Consumer spending has changed as a result. In the first quarter of 2025, Americans’ monthly spending on clothing and footwear dropped by more than 20% compared to the previous quarter.¹⁰ With 92% of consumers worried about their household finances, shoppers are thinking twice before buying new.²

Managing the Lack of Inventory

Tariffs don’t just affect pricing – they also change how retailers manage inventory. Since imported products cost more, stores might order less stock or delay shipments to see if trade conditions improve. In some cases, retailers rushed to stockpile inventory before new tariffs hit, bringing in extra shipments early. Companies like PVH reported inventory levels up 13% in Q2 2025, partly due to tariff-driven pre-buying.¹¹

On the flip side, higher prices can slow sales, leading to unsold inventory that sits on the rack longer. Retailers are being forced to simplify their offerings — Tapestry, for example, cut handbag styles by over 30% to focus on higher-profit products.¹¹ All told, import tariffs force traditional retailers into tough choices: raise prices, reduce variety, or find other ways to cut costs – and none of those is great news for shoppers looking for affordable options.

The Resale Advantage: Why Thrift Stores Aren’t Hurt by Tariffs

Here’s the good news: not all sellers of clothing and yarn are affected by these tariffs. Online thrift and resale stores work under a completely different model. They sell secondhand goods, which means they aren’t importing new products at all – they’re reselling items that are already in the country.

As ThredUp’s chief strategy officer put it: “With resale, you’re effectively domesticating the supply chain. All of the clothing comes from the closets of Americans.”¹²

Yarn Saver is a perfect example. Yarn Saver is an online thrift store that specializes in secondhand yarn, connecting crafters who have extra yarn with those looking for affordable supplies. Because Yarn Saver’s inventory comes from individuals and local sources, it skips import fees entirely. The same goes for other online thrift platforms that sell used clothes or textiles: whether it’s a designer dress from last season or an extra skein of yarn someone didn’t need, these items can be resold without any new tariff applied.

How it Works

In practical terms, this resale model means a thrift store’s costs are much lower for inventory. A traditional retailer importing a batch of sweaters from overseas might have to pay a 36% tariff on top of manufacturing costs, which then shows up in the price you pay at the mall. Meanwhile, an online thrift store getting a similar sweater from someone’s closet pays no import tax – the item is already in the U.S. and simply changing hands.

The result is that thrift retailers don’t need to raise their prices to cover tariffs. When tariffs on new goods spike (as we’ve seen throughout 2025), thrift stores keep steady pricing. Shoppers may even notice the price gap between new and used goods growing – making thrift options even more attractive.

Solving the Inventory Sourcing Problem

Online thrift stores also have an inventory advantage. Instead of depending on overseas factories and long supply chains, their supply comes from the public – which can be quite plentiful. Think of all the clothes in Americans’ closets that go unused! By tapping into this existing supply, a platform like Yarn Saver can offer a wide variety of products without worrying about international shipping. There’s no waiting on a container ship to arrive; inventory is uploaded all the time as people declutter and sell their gently used items.

This community-sourced inventory can adjust to demand quickly: if a certain style or material is popular, more people might list similar items. And because these stores don’t spend big money buying new stock from abroad, they’re not stuck with huge losses if something doesn’t sell. In short, resale models create a win-win – plenty of choice for shoppers, and far less risk for the seller.

The Numbers Tell the Story

The data confirms what thrift shoppers already know: resale is booming. According to ThredUp’s 2025 Resale Report:

  • The U.S. secondhand apparel market grew 14% in 2024 — its strongest growth since 2021 and five times faster than the broader retail clothing market¹³
  • Online resale grew 23% in 2024, eight times faster than apparel retail overall¹³
  • The U.S. secondhand apparel market is projected to reach $74 billion by 2029¹³
  • Thrift store foot traffic in Q2 2025 was up 39.5% compared to Q2 2019, far exceeding the 9.5% growth seen in the broader clothing industry¹⁴
  • A record 58% of shoppers bought secondhand apparel in 2024¹⁵

And tariffs are driving even more shoppers to discover resale. According to the ThredUp survey:

  • 62% of consumers are concerned that tariffs will make apparel more expensive¹³
  • 59% of consumers (and 69% of millennials) say they’ll seek more affordable options like secondhand if new clothing prices rise¹³
  • Among younger consumers, 48% now say secondhand is the first place they look when shopping for apparel — up 7 percentage points from 2022¹²

Customer Benefit #1: Affordability

From a shopper’s view, the rise of online thrift stores amid high import tariffs brings several major benefits.

Secondhand items generally come at a fraction of the price of new ones. Without import taxes to drive up costs, online thrift stores can offer deep discounts. For example, a high-quality sweater or a bundle of yarn on Yarn Saver might cost you far less than a similar item brand-new, because you’re not indirectly paying any import duty. Especially as new retail prices climb due to tariffs, buying thrift means stretching your dollar further. You can update your wardrobe or pick up crafting materials without breaking the bank.

Customer Benefit #2: Sustainability

Every item purchased secondhand is one less item that needs to be newly made. The fashion and textile industry is known for its environmental footprint – from the water and energy used to grow fibers and make fabric, to the millions of tons of textile waste that end up in landfills each year. Choosing thrift helps reduce waste and carbon emissions. It keeps clothes and yarn in use longer, delaying or preventing them from becoming trash.

Also, because thrifted items are already made, no new resources are used for your purchase. That sweater or yarn skein carries no new manufacturing footprint. By shopping through resale outlets, consumers support a more circular economy, which is gentler on the planet.

Customer Benefit #3: Accessibility

Thrift shopping – especially online – makes fashion and crafts more accessible in many ways. First, it opens up a wide range of products to people on a budget. Not everyone can afford the latest retail prices (which, as noted, are rising with tariffs), but thrift stores offer quality items at affordable prices.

Second, online thrift platforms break down location barriers. If you live in a town without great shopping options, stores like Yarn Saver or other online resale sites let you browse inventory from across the country and get it delivered to your door. This means greater access to variety and unique finds – from discontinued clothing lines to vintage fabrics – for anyone with an internet connection.

Lastly, for those who need specific sizes or adaptive clothing, thrift platforms often have a broad selection from many sources, increasing the chance of finding something that fits your needs. All of this makes the shopping experience more inclusive and convenient.

Turning Tariffs into Opportunity for Savvy Shoppers

Import tariffs on textiles have created a hard environment for traditional retailers and consumers, driving up prices and making inventory management tricky. With the Supreme Court expected to rule on the tariffs’ legality in early 2026, the situation may change further — but regardless of what happens in the courts, the basic advantage of resale stays the same.

Online thrift stores like Yarn Saver thrive by operating outside the tariff-impacted supply chain, passing savings and other benefits directly to consumers. Shoppers who buy secondhand enjoy lower prices, support sustainable practices, and gain access to a treasure trove of items that might not be available (or affordable) otherwise.

In an era of economic ups and downs – and yes, tariffs – the resale revolution is empowering consumers. It proves that you don’t have to sacrifice your wallet or your values to get quality clothes and materials. Whether you’re a fashion enthusiast hunting for a deal or a crafter looking for budget-friendly yarn, buying secondhand is a smart and responsible choice. After all, when life (or trade policy) raises the price of new goods, thrifters find a way to keep looking good and living creatively, all while saving money and supporting a more sustainable world.

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