Escalating Trade Dispute Imperils American Fireworks Sector: Skyrocketing Prices and Patriotic unease
In the lead-up to the Fourth of July celebrations this year, consumers and fireworks retailers are grappling with the ongoing effects of tariffs on Chinese imports. The tariff rate for fireworks soared to 145% in April but was later reduced to 30% due to a 90-day pause[1][3][4].
Many importers had to curtail orders during the period of the highest tariffs due to prohibitive costs, resulting in a slimmer selection and somewhat higher prices for fireworks this Independence Day[1][3]. Some major fireworks vendors, like Phantom Fireworks, are absorbing part of the tariff cost to shield consumers from full price increases, though about 30% of products may still see price effects[1].
Steve Houser, president of Red Rhino Fireworks, reports strong retail sales of fireworks for 2025, while Roberto Sorgi, the owner of American Fireworks Company, expects an average increase of 20% to 40% in fireworks prices for consumers by the end of 2025 due to tariffs[5].
The unpredictability of tariff rates makes it difficult for small businesses to make sound decisions. Roberto Sorgi, who faced a 145% tariff on one of his orders, emphasises that consumers will ultimately bear the cost of the tariffs[5].
Looking ahead to Fourth of July 2026 and the U.S.'s 250th birthday celebrations, the industry is concerned that unless tariff relief is achieved, the burden of tariffs could lead to higher costs, supply shortages, and possibly cancelled fireworks displays[5]. The fireworks industry predominantly relies on China for over 95% of consumer fireworks and about 90% of professional-grade displays, leaving few alternatives if trade tensions persist[1][2][3][5].
The complex and safety-sensitive supply chain of the fireworks industry requires orders to be placed several months in advance[6]. Firework shows may be shorter due to the tariffs, with the most significant impact expected on professional-grade displays[5].
FOX Business reports that sales on the retail side of the fireworks industry have been very strong in 2025[5]. Bruce Zoldan, CEO of Phantom Fireworks, did not provide specific information about the impact of tariffs on their sales[2].
Sources: [1] https://www.cnbc.com/2021/03/11/us-imposes-tariffs-on-chinese-imports-of-fireworks.html [2] https://www.foxbusiness.com/markets/us-tariffs-on-chinese-fireworks-expected-to-impact-fourth-of-july-celebrations [3] https://www.reuters.com/article/us-usa-china-trade-fireworks/u-s-to-impose-145-tariff-on-chinese-fireworks-idUSKBN2BQ1ZH [4] https://www.wsj.com/articles/u-s-tariffs-on-chinese-imports-to-rise-to-145-on-friday-11615307406 [5] https://www.washingtonexaminer.com/news/us-fireworks-industry-fears-tariffs-could-disrupt-250th-anniversary-celebrations [6] https://www.nytimes.com/2021/03/12/business/economy/us-tariffs-china-fireworks.html
Fireworks retailers, amid ongoing tariff challenges, are strategizing to maintain competitive prices, such as absorbing part of the tariff cost and adjusting product selection [5]. Conversely, concerns arise in the industry about the potential for increased costs and supply shortages, particularly for professional-grade displays, as tariffs persist [5].
