Secondhand Stakes: How Used Goods Are Rewriting the Rules of Capitalism and Climate Action

By Sadaf Taimur & Chantal Martineau

As Canada faces the twin crises of climate change and economic inequality, an interesting hero is stepping into the spotlight—used goods. From worn-out denim to refurbished electronics, the secondhand economy is challenging the dominant norms of capitalism and offering a real and practical path toward climate action. In a world ruled by extractive, linear supply chains and “take-make-waste” business models, the thriving thrift sector has begun to change the game. It is no longer an afterthought in the climate conversation; this growing market is quietly reshaping consumer behavior , reorienting trade patterns, and redefining value itself.

Capitalism’s Linear Problem and the Circular Solution

Traditional capitalist systems have been built on linear economic models (i.e., take-make-waste models) that emphasize extraction, production, consumption, and disposal. This model is not only wasteful but also deeply unsustainable in the context of planetary boundaries. With these systems, we are using up the planet’s raw materials so quickly that nature cannot keep up. Some critical resources we rely on are already becoming scarce, and at the same time the amount of waste we produce keeps piling up. In fact, global waste is projected to rise by 70% by 2050, unless urgent action is taken. According to the United Nations Environment Program (UNEP), the extraction and processing of resources (materials, fuel, and food) account for half of the total global greenhouse gas emissions and more than 90% of biodiversity loss and water stress.

In a world grappling with climate change, social inequality, and resource depletion, the limitations of traditional economic models are becoming increasingly evident. As global leaders, businesses, and communities search for alternatives, Doughnut Economics has emerged as a groundbreaking framework for creating sustainable and equitable economies. SOURCE

Developed by economist Kate Raworth, the model challenges the pursuit of infinite growth and instead reimagines success as thriving within ecological limits while meeting societal needs.

The circular economy proposes an alternative: designing systems that keep materials in circulation (through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting), regenerate natural ecosystems, and reduce dependency on virgin resource extraction. Within this framework, used commodities like clothing, furniture, electronics, and books are not just leftovers; they are vital actors in a low-carbon, regenerative economic model to build a sustainable future. The Canadian government has recognised this potential and has started to support and expand reusing, repairing, and sharing efforts via various circular economy initiatives. A report by the Canadian Climate Institute also highlights how strategies like reuse, refurbishment, and remanufacturing are key to cutting emissions and using resources more efficiently.

However, systemic change requires more than consumer participation—it demands robust policy intervention. In Canada, a significant gap remains in the absence of comprehensive right-to-repair legislation and the lack of producer responsibility for post-consumer waste. Currently, the right to repair movement is largely focused on digital technologies. While still not fully legislated, it aims to promote circularity by extending product lifespans and empowering consumers to repair rather than discard items. Furthermore, shifting accountability to manufacturers could open new economic opportunities—particularly in local repair and recycling industries—while dealing with commodities which are already in circulation and addressing the root causes of overproduction.

Thrifting: Local, Accessible, and Climate-Aligned

Among circular economic strategies, thrifting stands out for its accessibility and immediate environmental benefits. The secondhand retail sector in Canada, driven by organisations like Goodwill Industries, Salvation Army, and local non-profits, has built an infrastructure of donation collection, sorting, pricing, and resale that embodies circularity in action. Unlike conventional supply chains that often span continents, used goods in this ecosystem are typically sourced domestically, within the same communities where they’re sold. This dramatically reduces emissions (especially associated with commerce and transportation) and eliminates the need for carbon-intensive production. Moreover, there are no tariffs on goods sourced domestically and sold within the local community. This positions thrift infrastructures as a cost-effective and climate-smart solution.

Furthermore, thrift infrastructures are more than just a way to reduce waste –they also embody environmental justice. They create employment opportunities, support social programs, and offer affordable products to low-income households—benefits that align with a just transition framework. For instance, Goodwill Industries supports thousands of Canadians from local communities on their path to work in inclusive workplaces, where job training and upskilling are part of the organisational mission. At its heart, every donated item powers a local economic, environmental, and social impact loop that keeps value circulating within communities, where it matters the most!

Yet, it is important to consider that consumption should never be glorified blindly. It is complex and multifaceted: local economies must benefit local communities—not price-gouging corporations—and even secondhand consumption, if commodified without reflection and ethical considerations, risks replicating extractive patterns. Therefore, for thrift infrastructures, it is important to build transparency in operations to demonstrate leadership in the secondhand economy space. While some thrift infrastructures have begun to move towards greater transparency and more circular systems, there remains a need for time and collaboration from all stakeholders.

Beyond the Sales Floor: Repurposing the Unsellable

Canada’s second-hand economy is beginning to play a larger role in how materials are recovered and reused across industries. What was once the end of the line for unsold clothing is now a starting point for innovation. Globally, more than 134 million tonnes of textile waste are expected to be landfilled annually by 2030, despite estimates that 95% of textiles could be reused or recycled. Only a fraction is ever recycled or recovered, contributing to an estimated USD 500 billion in lost economic value from underdeveloped circular solutions. In response, new circular pathways are taking shape. For example, an emerging opportunity lies in textile-to-fibre recycling, where blended or low-grade fabrics are processed into pulp for packaging and industrial uses. With existing infrastructure and demand for cellulosic materials, Canada’s paper and pulp sector—facing long-term decline—has shown renewed interest in this potential supply stream.

As trade barriers and tariffs increasingly impact international supply chains, domestic material recovery offers another resilient alternative for commodities which cannot be reused—one that reduces waste while supporting local industries. Thrift infrastructures, with their steady supply of donated commodities and well-established sorting and grading systems, are well-positioned to supply end-of-use materials for recycling and recovery. For example, supplying end-of-use plastics for conversion into decks, flooring or furniture. In this way, secondhand systems are moving beyond resale and becoming engines of material recovery that support low-carbon manufacturing and reduce demand for virgin resources.

Trade Barriers and Tariff Pressures: From Risk to Opportunity

Despite its benefits, the reuse sector faces evolving challenges, especially when it comes to international resale markets. Beginning March 4, the United States implemented a 25% tariff on most Canadian goods, including secondhand and vintage apparel (a market worth nearly $200 billion) and other commodities. This has created uncertainty for both buyers and sellers, with small Canadian thrift infrastructures expected to feel the greatest impact. Many of these sellers rely heavily on U.S. customers, with some generating most of their sales through cross-border shipping. Until now, the “de minimis threshold” has allowed duty-free

shipments under $800, enabling the free flow of low-cost vintage items. However, this threshold is expected to be phased out, making secondhand goods significantly more expensive for American buyers and threatening the viability of small thrift shops in Canada.

Some actors in Canada import used goods from abroad, either as donations or resale inventory, only to face tariff-related pressures at Canadian borders. For instance, according to Toronto city news, a Toronto-based Relocation Vintage has been sourcing the inventory from the suppliers who import all of their clothing from the US. In cases like this, tariffs are creating friction and disincentives in what could otherwise be a climate-friendly trade flow.

Yet, these challenges also present an opportunity for transformation. Canada’s well-established thrift infrastructure, especially the robust acquisition and sorting models developed by national networks, could offer an alternative to importing inventory from the US. Rather than importing used inventory, resellers could source from domestic/Canadian partners who already have the capacity to sort, grade, and distribute used goods at scale. This approach could reduce border-related emissions and policy/trade complications, while reinforcing local economic resilience by supporting local jobs. Furthermore, it creates an opportunity for thrift networks to get creative by thinking out of the box to engage with local buyers, strengthening community relationships, and promoting sustainable consumption more deeply.

There is a strong need to integrate circular business models into global trade frameworks, noting that local reuse and repair systems can offer more sustainable alternatives to international flows of goods. Canada is uniquely positioned to lead by example in this domain, particularly by promoting circularity and ensuring that the true environmental, economic, and social value of secondhand items is recognised in the trade and policy frameworks.

What about Clicks and Thrifts: Digital Resale & Tariffs

A significant advantage in the secondhand economy is e-commerce. Digital platforms like Ebay, Shopify, Facebook Marketplace and Thread Up have made secondhand goods more accessible and have normalised re-use for a wider audience.

In Canada, where digital access is widespread but brick-and-mortar retail is still dominant, e-commerce offers a powerful opportunity to expand the reach and impact of thrift operations. However, even secondhand systems can encounter difficulties when heavily reliant on international shipping - the rise of cross-border resale also brings regulatory risks. Online purchases of used goods that originate in other countries may face uncertain duties or inconsistent classification, potentially deterring consumers or undermining the sector’s climate benefits.

In response, there is a growing opportunity to bolster domestic resale channels within Canada, and the “buy-Canadian-trend" has further encouraged consumers to support local businesses, creating a favorable environment for domestic secondhand markets (including the online reuse/ecommerce market). Strengthening domestic digital resale not only reduces carbon emissions from transport and packaging but also builds resilience against the unpredictability of global trade. Furthermore, to safeguard the environmental and economic value of secondhand e-commerce, Canadian policymakers must engage in proactive regulation. This could include clear customs classifications for used goods, incentive programs for local digital resale platforms, and carbon impact disclosures to inform consumer choices. By aligning digital infrastructure with circular principles, Canada can ensure that the secondhand sector remains both scalable and sustainable.

Reshaping Capitalism—One Used Item at a Time

The significance of the used-goods sector extends beyond emissions and economics—it speaks to a broader philosophical shift. By decoupling consumption from extraction, and value from newness, thrift infrastructure challenges core assumptions of consumer capitalism. It nudges society toward a mindset of sufficiency, stewardship, and interdependence—values often missing from mainstream economic discourse. Economists such as Kate Raworth (author of Doughnut Economics) and Tim Jackson (Prosperity Without Growth) have long argued for models of prosperity that prioritize well-being over GDP growth. The secondhand economy exemplifies this vision. It grows not by exploiting new resources, but by regenerating value from what already exists. It fosters community resilience, environmental consciousness, and creative reuse—all while generating jobs and supporting livelihoods. Still, the secondhand economy is not flawless. It is, however, a better solution than the one we have now—so long as we build comprehension rooted in fact, and guide it toward collective and ethical outcomes.

Unravelling the claims for (and against) green growth. SOURCE