Although the sound of the neighborhood ice cream truck is often a sign that hotter days are upon us, nothing resonates more with summer than brightly painted seasonal fireworks stores.
But what truly marks the peak of the summer season are Fourth of July celebrations, which include parades, festivals, and outdoor barbecues, ending with fireworks displays that cannot be missed.
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The Fourth of July is the most patriotic day of the year for Americans, since it commemorates the day that the U.S. became an independent nation, freeing it from British rule.
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In addition to being an important historical holiday that multiple generations have celebrated for nearly 250 years, it has become a day for many American families to gather around loved ones and create fun memories.
Now imagine if the highly anticipated Fourth of July fireworks show disappeared one day, never to be seen again by future generations.
The fireworks industry is threatened by tariffs.
Image source: Rochlin/Getty Images
China tariffs are starting to affect businesses with no manufacturing alternatives
President Trump declared a national emergency in April and implemented new tariffs on products imported into the U.S. from many countries, including an additional 10% baseline tariff.
However, a few days later, Trump paused the “reciprocal” duties on many countries for 90 days, except for China, which has been facing their effects since April 2.
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From that day on, all shipments from China into the U.S. now face tariffs of up to 145%, making these costs nearly impossible for most businesses to sustain without suffering financial repercussions.
Unfortunately, trade-war effects are now trickling down to an unexpected sector, threatening a decades-old classic American tradition.
The fireworks industry is threatened by high China tariffs
With the massive increase in tariffs on Chinese imported products, higher prices have forced many fireworks distributors and sellers to cancel or reduce shipments.
In addition, most fireworks imports happen within the first five months of the year, so after the tariff implementation date for China was revealed and the deadline became tighter, fireworks distributors and sellers had to figure out ways to get as many shipments as possible before the price increase hit.
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Approximately 273.6 million pounds of fireworks are consumed in the U.S. yearly as of 2023, generating over $2 billion annually for the U.S. economy, according to the American Pyrotechnics Association (APA) and National Fireworks Association (NFA).
Almost all fireworks shipped to the U.S. come from China, including 75% of those used in professional shows and 99% of those purchased by consumers, as reported by the NFA.
The scaleback in fireworks purchases by sellers could lead to a potential shortage for the upcoming holidays, such as Memorial Day and the Fourth of July, or lead to the possible end of a decades-old tradition.
The NFA and APA have taken steps to advocate for the industry and preserve this American tradition. They even sent a letter to President Trump on April 3 requesting that fireworks be exempt from tariffs.
“We urge you to take the same wise action now to protect American jobs, small businesses, and the patriotic celebrations that define our great nation and bring us together,” wrote the NFA and APA in the letter.
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