Navigating New Tariffs: What It Means for Your Resale Business in the US

April 9, 2025 at 7:30 pm ET

Disclaimer: The information provided herein is for general informational purposes only and does not constitute legal advice. Trade laws and regulations are subject to change without notice. For guidance specific to your situation, please consult with qualified legal counsel or a licensed customs broker.

Summary: Recent changes to US import tariffs are creating waves in our luxury resale industry, but we’ve weathered storms before and will navigate this one together. The new baseline 10% tariff is now in effect, with potential additional “reciprocal tariffs” currently paused for many countries. While these changes will temporarily affect pricing dynamics between new and pre-owned luxury goods, we expect the market to stabilize by summer as retailers adjust their pricing. LePrix is actively working to minimize impacts on your business through pricing negotiations, diverse sourcing options, and personalized support. The resilience of the luxury resale market remains strong, especially during economic shifts, and we’re committed to helping you maintain healthy margins through this transition.

The Changing Landscape

You’ve likely noticed the recent wave of tariff changes affecting our industry. The new U.S. tariffs have officially gone into effect, impacting imports including our specialty: European luxury handbags. While we’re still learning about the long-term effects, these changes influence import costs, pricing, and your resale margins.

Here’s what we know so far:

• Baseline Tariff adds 10% to current duties: On April 5, 2025, a new Executive Order established that goods imported into the US will now face a baseline tariff of 10% (with a few exceptions, including Canada, Mexico, and Russia). (Whitehouse Fact Sheet)

• Reciprocal Tariff is TBD: On April 9, 2025, "Reciprocal tariff" rates briefly went into effect at midnight but were paused several hours later at 1:18 PM ET. The administration has paused this tariff on approximately 75 countries (excluding China). The full list of countries under this pause is still pending release. We have yet to confirm the EU is one of them.

Tariffs are based on the original “Made In” country. For example, if a used Louis Vuitton bag that was Made in France ships to you from Japan, it will be subject to the EU tariff rate.

Q2: How does the Baseline tariff calculation work?

The new 10% Baseline Tariff adds to any existing duty rate. See HTS 9903.01.25.

For instance, if you purchase a pre-owned Chanel bag from France that previously had a 7% customs rate, the total is now 17% (7% existing customs rate + 10% baseline).

Q3: How would the Reciprocal Tariff affect my business?

Although there is debate on how the Reciprocal Tariff rate works, we interpret it to mean it will replace the baseline tariff. See HTS 9903.01.50.

Let’s continue using the Chanel bag example: If the pause on the EU Reciprocal tariff is lifted, your imported pre-owned Chanel bag would face a 27% total tariff (7% existing customs rate + 20% reciprocal EU tariff). See Chapter 99 of HTSUS. Obviously, this seems like a death sentence on our slim resale margins but keep reading.

Q4: How will these new tariffs allow me to continue to run my business if it is taking all my margin?

First, remember that we’re all navigating this together—resale businesses, brand houses, and retailers alike. Resale has historically shown remarkable resilience during economic shifts.

Here’s what to expect:

• 
  • Short term - sluggish spring: Our secondhand pricing may increase before retail prices adjust, temporarily narrowing the price gap between new and pre-owned. It’s going to be a soft Q2 so plan accordingly.
  • 
    • Raise your prices in sync to when brand houses and retailers raise prices
  • 
    • You can focus on sourcing domestically in the US to avoid the whole tariff situation until the dust settles
  • 
    • You can ask our overseas suppliers to negotiate lower prices to help soften the impact of the tariffs. LePrix is temporarily shouldering some of the tariff costs increases to help you keep as much of your margin.
  • 
    • If you purchase oversea, you may want to consider pausing for a few days or weeks to update your strategies above while keeping an eye on tariffs negotiations settling down
• • By summer - market should level set: We anticipate EU brand houses and retailers to fully adjust their pricing with the new tariff rates, making our secondhand offerings attractive again.
• • What about the buzz about recession: If we head into recession, the secondhand market typically performs relatively well, with increased supply (as more people sell) and stronger demand (as buyers seek better value). However, higher end luxury pre-owned brands sales will be less impacted than the mainstream pre-owned luxury brands.

This exemption allows shipments valued under $800 to enter duty-free (per person, per day) and is under review. The administration has confirmed plans to eliminate this exemption for Chinese-made goods on May 2, 2025. This will impact Shein, Temu and a slew of sellers on Amazon and Etsy.

The U.S. administration has indicated plans to phase out the de minimis exemption for other countries as well once systems are in place to fully collect duties. However, as of this date, no specific timeline has been announced for these changes. In other words, don’t build your whole business model on this exemption.

Q6: Which carriers have started implementing these changes (if any) that you are aware of?

DHL, FEDEX, UPS but they are all as confused as everyone else is

How LePrix Is Supporting You

We’re taking proactive steps to help protect your business during this transition:

✅ Forging partnerships with LePrix’s suppliers to explore cost control strategies that preserve your margins

✅ LePrix wholesale pricing will continue to be all inclusive which means the price that you see on www.leprix.com includes customs/new tariffs and duties so you don’t need to do math gymnastics.

✅ Maintaining Transparent Communication with regular updates as policies evolve

✅ Diversifying Inventory Sources to provide you with flexible, tariff-conscious sourcing options

✅ Updating Listings & Disclaimers to clearly communicate potential impacts

Your Action Plan

• Review Your Pricing Strategy: Take time to analyze your data and ensure your pricing aligns with current market conditions. For example, keep a pulse on pricing on large competitor websites on the daily and make sure your pricing is current. We are already seeing prices rise on resale sites.

• Review Your Supply Strategy: Talk to your account manager at LePrix and let us know what you are looking for. Evaluate your sourcing channels and increase efforts domestically for now until the market adjusts.

• Connect With Us: Your LePrix Account Manager is ready to discuss personalized strategies to help you navigate these changes

While these changes bring uncertainty, remember that you’re part of a resilient community. At LePrix, we remain fully committed to your success and are confident that together, we’ll adapt and thrive through this transition.

The luxury resale market has weathered many changes before, and your ability to provide exceptional products with authentic stories continues to be your greatest strength.

Have questions? We’re here for you always. Please reach out anytime—we’re all navigating this new territory together, and your success remains our priority.

Your partner,

Elise Whang (CEO) and The LePrix Team