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Recommerce, secondhand shopping may cushion the blow

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2 years ago

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Oleh_slobodeniuk | E+ | Getty Images

With tariffs ramping up, the prices on some everyday items will rise as well. That is weighing heavily on American consumers. 

A recent consumer survey found that 86% of Americans expect price hikes from higher tariffs; and many already have a strategy to cushion the blow.

Faced with higher costs, 67% plan to change their shopping habits, according to the report by Bid-on-Equipment. Among the top changes respondents plan to adopt, 46% say they will shop at thrift or secondhand stores. Other saving strategies include comparison shopping or buying fewer imported goods. The survey polled more than 1,000 adults in January.

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In another survey by shopping app Smarty, 50% of respondents said with tariffs, they’re more likely to consider secondhand goods or local alternatives.

“Initially there’s quite a bit of uncertainty, and we expect that to grow while the timetable for these tariffs start to become people’s reality,” said Vipin Porwal, Smarty’s founder. “Savvy consumers will look to ramp up savings and rewards opportunities any way they can.”

Some Americans reconsider thrifting

A separate report by ThredUp, an online consignment and thrift store, reflects a similar finding: More than half, 55%, of surveyed consumers say if the economy doesn’t improve, they’ll spend a higher share of their apparel budget on secondhand items. 

“You can see this only amplifying” in a world with tariffs and inflation, said James Reinhart, CEO of ThredUp.

In fact, for 60% of respondents, thrifted clothes gives them the most “bang for their buck,” the report found. The report is based on research by GlobalData, as well as a December 2023 survey of more than 3,600 adults. 

‘Tariffs are a tax’

“The tariffs are a tax on the consumer,” said Shawn Grain Carter, an associate professor at the Fashion Institute of Technology, part of the State University of New York.

Some popular brands like Shein and Temu imported from China could face an immediate impact and will likely funnel those extra costs to customers in the way of higher prices. 

Trump tariffs are coming. How U.S. businesses are avoiding them

As part of the new tariffs on China, President Donald Trump revoked a popular tax loophole known as de minimis. The exemption allowed many e-commerce companies to send goods worth less than $800 into the U.S. duty-free.

“This is a major change,” Ann Cantrell, associate professor of fashion business management at the FIT, said of the new rule. 

Recommerce is taking off

Buying from secondhand stores to get a discount is not a new trend. In 2023, 85% of respondents said “saving money” was the top reason they shop in thrift stores, according to a 2024 report by Capital One. 

What’s more, thrifters save on average $1,760 a year by purchasing secondhand, the bank found. 

Shoppers continue to embrace so-called recommerce, driven by a pursuit of value and a desire to shop in more sustainable ways. Reports show the stigma around buying secondhand is now largely gone.

Over the next five years, the recommerce market is projected to grow 55% by 2029, reaching $291.6 billion and outpacing the overall retail market, according to a 2024 recommerce report by OfferUp, an online marketplace for buying and selling new and used items.

While the industry has been dominated by clothing resale, 76% of recommerce transactions now involve non-clothing items like electronics, furniture, home goods, sports equipment and car parts, OfferUp found. 

Still, secondhand shopping cannot replace all of the conveniences that consumers have become accustomed to, according to Steven Conners, founder and president of Conners Wealth Management in Scottsdale, Arizona.

“We are in a convenience economy, we are programmed by the likes of Amazon,” Conners said. “I would be reluctant to say secondhand items are going to be all the rage six months from now.”

What to know before you shop secondhand

Whether you’re scrolling online for a secondhand item or stepping into a brick-and-mortar thrift store, you should prioritize the quality and the construction of your products, experts say.

Consumer savings expert Andrea Woroch recommends shopping local listing sites like Facebook Marketplace and NextDoor to find deals for large household items and sporting goods, such as furniture, bikes and even light fixtures like chandeliers, which are often imported and tend to cost a lot to ship.

However, “avoid large household appliances which could not function properly if you’re buying directly from another person,” Woroch said. “Your best bet with large and small kitchen appliances is to look for certified refurbished models from reputable retailers like Amazon Renewed or open-box items or floor models from The Home Depot or Best Buy.”

When it comes to clothing, there is no shortage of stores and sites for secondhand apparel and accessories. Those savings may not be as significant, Woroch cautioned.

“Sometimes the prices for gently used clothing are similar to what you can find on sale for new items at the end of the season from regular retailers or through discount shopping stores like Nordstrom Rack, Ross and TJMaxx,” she said.

However, there may still be a “better value proposition” through secondhand and resale stores, FIT’s Grain Carter said.

But “to get the best value for your money” consider the four C’s, Grain Carter said: cut, construction, craftsmanship and condition.

For instance, look at the fibers and materials used to make the clothing item: cotton, silk, linen, flax and wool are natural fibers that will last longer. Engineered or “man-made” fibers like spandex will decompose and have a “shorter shelf life,” according to Grain Carter.

“When you start paying attention to those things, you’ll know this is a garment that has stood the test of time,” she said — and better yet, “it will continue to stand the test of time.”

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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