What do tariffs on fireworks mean for July Fourth and America's 250th in 2026?

Yahoo

a day ago

Tariffs on China, which produces the vast majority of the world's fireworks, aren't expected to noticeably affect this year's Fourth of July displays in Maryland. However, the companies behind the shows are already worried about supply — and even their own viability — as the U.S. prepares to mark its 250th birthday in 2026.
Before President Donald Trump drastically increased tariffs on Chinese imports in February, Tim Jameson was looking to 2026 to be a 'once in a lifetime hit' for his Charles County firework company, promising 'the largest revenue stream we could possibly have.'
But now he says that his company of five full-time employees and 60 part-timers, Innovative Pyrotechnic Concepts, will be forced to close after exhausting its inventory on semiquincentennial displays, unless tariffs on China are lifted by late summer.
China manufactures about 90% of professional display fireworks and 99% of consumer fireworks used in the United States, according to the American Pyrotechnics Association. Historically, fireworks imported from China have faced duties of about 5%.
As part of a broader trade war, this year President Donald Trump placed large tariffs on goods from China – going as high as 145% with combined tariff rules. While the highest tariffs are under a 90-day pause through August, the fireworks industry has remained fragile with 30% tariffs on imports from China since mid-May.
Just this week, Trump announced a deal with China that would include a 55% tariff on all Chinese goods coming to the United States.
'It's the uncertainty that really makes it a challenge for small businesses,' said Julie Heckman, executive director of the American Pyrotechnics Association.
Despite the uneasiness for the industry during its busiest time of year, tariffs did not change how much organizers are paying for large Baltimore-area public displays next month like those over Baltimore's Inner Harbor, Annapolis' Spa Creek, and Columbia's Lake Kittamaqundi. Spectators shouldn't notice anything different about the displays, organizers said.
The fireworks for Baltimore City's display were ordered before the tariffs hit, said Michaela O'Gallagher, the creative services director for Image Engineering, the firework company working with the city. An Annapolis spokesperson said the city got the quote from its contractor in December.
Contracts made months in advance have meant that some firework companies across the country have had to absorb costs from tariffs. This year and next year, some will likely have to do slightly shorter firework shows or use fewer shells to make their displays still happen with limited budgets, according to Heckman and Steve Houser, a former president of the National Fireworks Association and current counselor to the organization. But these changes, Heckman said, will likely be undetectable to the average viewer.
Some companies, including Jameson's, have multi-year contracts with municipalities and worry about tariffs affecting their ability to deliver shows at the same budget.
'I can't just go in and raise prices,' Jameson said. 'It's going to be a dead loss if we ship this stuff.'
Because of the dependence on China, the fireworks industry operates about a year in advance, starting with ordering product, according to Houser. Contracts for big Independence Day displays are signed in the fall and product ships from about mid-February to May, he said.
When the heavy tariffs went into effect, many businesses told their suppliers in China not to ship, creating a backlog. Stock filled up in warehouses, leading manufacturers to stop production.
As some firework businesses have started to accept having to pay the 30% tariffs to get their product in, they are also dealing with higher shipping costs as companies compete for the limited space for hazardous cargo on container ships.
Jameson said he has paid for two containers' worth of fireworks that are sitting in China waiting to ship. He usually sells four to five containers worth of fireworks per year – used for displays in Montgomery County, Prince George's County, Maryland's Eastern Shore and Northern Virginia. For next year, he says he likely will only be able to sell the two currently idled containers.
'We're going to be able to take whatever shows we can get with that amount of product and call it a day,' Jameson said. 'There's just no way to recoup.'
In 2026, Houser predicts a 30% to 40% increase in demand for fireworks as municipalities and individuals prepare to celebrate the 250th anniversary of the United States. Big businesses and small businesses, Jameson said, won't be able to fulfill that demand.
When Trump went up against China in a trade war in 2019, there was an exception for firework imports. This year's tariffs, however, were made under an emergency declaration which provided no opportunity for the industry to formally apply for exceptions.
The American Pyrotechnics Association and the National Fireworks Association have jointly asked the Trump administration for a similar exemption or a reduced tariff rate. Houser, from the NFA, said the tariffs don't help the fireworks industry because the United States has never been a major manufacturer of fireworks.
U.S. regulatory standards, lack of supplies and labor costs prevent the industry from pivoting to domestic manufacturing, according to a joint letter to Trump from the APA and NFA.
'There's no other place to get them from, no other countries we can run to,' Houser said.
Have a news tip? Contact Katharine Wilson at [e-mail].