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Why ThredUp’s CEO was giving literal high-fives after Trump’s tariff policies

Could competition getting trounced by trade restrictions help the resale giant turn a profit?

4/7/25 10:51AM

You’d have been hard pressed to find many clothing company execs celebrating a single one of President Trump’s new trade policies last week — but that’s exactly what ThredUp CEO James Reinhart did.

Reinhart, the cofounder of one of the biggest names in the online clothing resale industry, reportedly high-fived a colleague on hearing that the Trump administration will close a loophole that’s allowed Shein and Temu to dominate by dodging import taxes on packages under $800 for years.

While a lot of retail stocks were hammered in the aftermath of “Liberation Day,” as key international manufacturing hubs were slapped with 30% or higher tariffs, ThredUp held up pretty well, its share price having risen modestly over the last five days. As Reinhart himself observed in the same interview, “Our supply chain is domestic,” which could help make the company become an “outlier” in the space across the coming quarters.

Still, it might take a little more than the suffering of overseas (and overseas-exposed) competitors to get ThredUp into the black any time soon.

ThredDown

Since going public just over four years ago in March 2021, ThredUp shares have slumped more than 85%, as investors have grown weary of the long path to profitability for a platform where people go to resell their clothes, shoes, and other pre-loved items. However, ThredUp is hardly alone in the challenges it faces in the secondhand clothing industry: luxury reseller The RealReal has also struggled to reach profitability since going public, down over 80% since its IPO.

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Texas sues Netflix, accusing streamer of spying on children and collecting user data without consent

The state of Texas filed a lawsuit Monday against streaming giant Netflix, alleging that the company has built a “behavioral-surveillance program of staggering scale.”

The suit alleges that Netflix is “deceptively designed” to be addictive, using features like autoplay to get viewers hooked, “mining those users for data, and then converting that data into lucrative intelligence for global advertising juggernauts.”

“When you watch Netflix, Netflix watches you,” the lawsuit reads.

“This lawsuit lacks merit and is based on inaccurate and distorted information,” Netflix said in a statement to Sherwood News. “Netflix takes our members’ privacy seriously and complies with privacy and data‑protection laws everywhere we operate.”

Texas is seeking civil penalties of “up to $10,000 per violation” of the Texas Deceptive Trade Practices-Consumer Protection Act, along with an additional penalty of up to $250,000 per violation involving a consumer aged 65 or older.

“Netflix is not the ad-free and kid-friendly platform it claims to be. Instead, it has misled consumers while exploiting their private data to make billions,” said Texas Attorney General Ken Paxton in the press release announcing the lawsuit.

Netflix did not immediately respond to a request for comment.