How have tariffs impacted fireworks prices?

CBS News

2 days ago

Our nation's birthday is just about a month away, and the cost for a key element to the fun is now "up in the air."
As Americans plan July Fourth festivities, WCCO wanted to know how tariffs have impacted fireworks prices.
A rainbow of excitement adorns the shelves at Fireworks Nation in North Hudson, Wisconsin.
"Every year the product gets better and better, and safer," said Anders Nelson, owner of Fireworks Nation.
He says customers have asked him if the price of his fireworks has gone up amid President Trump's trade war with China.
"We're not raising our prices at Fireworks Nation," he said confidently. "Some of our shipments were affected by the tariffs, and we definitely saw our costs are up this year. Shipping costs are up, but we're holding our prices."
While their prices hold steady, other retailers might raise them, according to Julie Heckman. She's the executive director of the American Pyrotechnics Association.
"(Price hikes) will depend on whether the retailer got their product here prior to the tariff hikes and if not, how much can they absorb versus what do they need to pass on to the consumer," said Heckman.
She says consumer fireworks, the kind people buy at the store, already had a 5.3% tariff. It jumped to 20% in early March as the trade war got started. By April 9, reciprocal tariffs were pushed as high as 145%.
"It hit at the absolute worst time when all of our products are trying to get here from China for the Fourth of July," said Heckman.
Nelson and other retailers typically order their fireworks from China a year in advance. They're produced in the fall and winter, then shipped in the months leading up to the next Fourth of July.
"In our case, we had ships on the water, and so, of course, we had to take them in, so we did have some tariff charges or shipping charges. But all of the ones that had not been shipped, we put a halt on the orders," said Nelson.
President Trump's 90-day pause on the tariffs was helpful, but Heckman said it kick-started other issues.
"When the tariffs were reduced a couple of weeks ago to 30%, many of the importers said, 'Go ahead, put my containers on the water.' But the issue will be, will they get here in time for the Fourth of July?" said Heckman.
Most of Nelson's current product arrived before the new tariffs hit, so he's not worried about the upcoming holiday.
"We're a volume dealer. We are more than a year ahead in our purchasing, and so we've been building our inventories," said Nelson.
There is industry-wide concern regarding 2026, when the U.S. celebrates its 250th birthday.
"The demand is going to be very high, plus [Fourth of July] falls on a Saturday, a weekend," said Nelson.
Fireworks production in China came to a halt during the height of the tariffs, said Heckman, including workers being laid off. Production resumed once the tariffs were paused, but the delay created a potential supply chain problem that lingers into next year.
"We are very concerned about 2026 because we lost vital manufacturing production time," said Heckman.
Given the uncertainty with the trade war and how tariffs could impact prices in the months ahead, Heckman advises people to shop early.
"Don't be surprised if there are some shortages. Shelves are not going to be bare, but there might just be a certain item that you're used to getting that maybe that retailer doesn't have in stock this year," said Heckman.
Nelson wants people to shop smart and seek the best prices. More importantly, he wants them to make sure they're being smart about how they use the fireworks.
"When you come together and you have your party, just make certain that you're safe. Read the labels on the packages and have a great, fun, safe, and happy Fourth of July," said Nelson.
Studies show that over 96% of all fireworks in the U.S. come from China. Last year, that amounted to $452 million in product.
Heckman would like to see the fireworks industry get a special exemption from heightened tariffs, which she said is what happened during Mr. Trump's first term.