Global trade of used clothing, which comprises a series of activities that connect the Global North to the Global South, has grown substantially over the years. This paper analyses the trade data of the export/import trade of used clothing to provide an overview of global trade statistics and explores the sustainability impact of the used clothing trade. Both qualitative and quantitative secondary data were employed in the study. Analysis of export data revealed a declining trend, which may be attributed to the import bans of used clothing and new cheap imports from Asia. While the United States is constantly being the top exporter, and Pakistan is the top importer, the value of exports grew the fastest in China during the last decade. Analysis of sustainability impacts revealed both positive and negative facts. Used clothing markets support thousands of livelihoods and provide affordable clothing for those who live in poverty; however, the fast fashion phenomenon is threatening this important trade. Therefore, this study urges an investigation of alternative business models to reutilize clothing waste. Remanufacturing and recycling-based business models, when implemented in the Global South, could provide viable solutions to reutilize excess clothing while enhancing the sustainability benefits. Developing collaborative relationships among the stakeholders of the used clothing supply chain is immensely necessary to implement such disruptive business models and to capture values along the supply chain.