Trump’s latest trade crackdown has us staring down the barrel of what I’m probably going to trademark as Tariff War 2.0. This time, he’s going after fast fashion, electric vehicles, and (most notably) the $800 loophole that let Chinese e-commerce giants ship you $3 sunglasses without paying a single dime in import taxes (you know, the ones that break before your Amazon package even gets stolen).

So yeah, if it feels like we’re about to relive March and April, it’s because we might be.

Most CEOs probably spent the weekend refreshing their inbox for panic memos from their supply chain team. But not James Reinhart… the cofounder of ThredUp. When the news hit, the guy high-fived a colleague. (I didn’t make that up, that actually happened).

ThredUp may not be the flashiest name in fashion, but right now, it’s positioned better than almost anyone else in the retail space. And a lot of that comes down to timing, business model, and a bit of luck.

Last week, former President Trump reignited the tariff conversation in a big way. His proposed crackdown on Chinese imports (including the end of the de minimis loophole that allowed goods under $800 to enter the U.S. without duties) is a clear signal that we could be heading into another round of trade tension. For e-commerce giants like Shein and Temu, this is a direct hit. Their entire model relies on low-cost overseas shipping and duty-free delivery. If those tax breaks disappear, their prices go up, and their competitive edge fades (simple economics, dude).

ThredUp, however, isn’t built on that system. Their supply chain is almost entirely domestic. The company sources secondhand clothing from American closets and resells it through its platform, meaning they’re not dependent on foreign factories or shipping routes that could be disrupted by tariffs (smart, right?).

The numbers never lie. The stock is up 410% in 2025 alone and has gained close to 1,000% over the past 12 months. That type of movement suggests something deeper is going on than just tariff tailwinds. Investors are buying into the model… and for good reason.

What really separates ThredUp, in my view, is how they’ve used technology to improve both customer experience and operational efficiency. In 2024, they introduced a suite of AI-driven tools that actually seem to work. Their Image Search allows users to upload a photo of an outfit and find similar items on the platform. It’s a simple concept, but one that removes friction for shoppers. Their Virtual Stylist and Personalized Recommendations systems use user behavior and preferences to suggest items with surprising accuracy. More than gimmicks… they’re features that improve conversion and keep customers engaged (pretty important things).

Yes, headline revenue is down 10% year-over-year… but that’s not the whole story. Their core resale business grew 10% over the same period. That growth is being driven by several important user metrics: active buyers increased by 6%, total orders rose by 16%, and most notably, new active buyers jumped by 95%, the highest on record for the company.

Financially, the business is becoming more efficient. Gross margin is holding at nearly 80%, which is extremely high for the retail sector. Their adjusted EBITDA margin improved by 240 basis points, and net losses declined by more than 65% year-over-year. That shows a company not only growing but moving meaningfully toward profitability.

Wall Street’s caught on. Two major firms have already issued “Outperform” or “Overweight” ratings with a $7 price target. And technically, the chart still looks strong. If momentum holds, there’s no reason this thing can’t take another leg higher. (Unless, of course, the Fed wakes up and decides we’ve had too much fun.)

Stock.News has positions in Amazon.