How Will Tariffs Impact 4th of July Festivities?

Newsweek

2 days ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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Americans planning to shoot off fireworks and host barbecues for Fourth of July weekend festivities may be spending more than in years past.
Why It Matters
President Donald Trump's administration is engaged in an ongoing global trade war consisting of unilateral tariffs that have exacerbated not just American businesses and consumers but countries and industries around the world.
Negotiations as part of Trump's self-imposed "90 in 90" deadline—a period of 90 days for 90 targeted trade deals or renegotiations globally—have not so far led to significant outcomes or improvements in consumer sentiment.
What To Know
Nation-specific tariffs have been coupled with tariffs on products like steel and aluminum, the latter of which the U.S. doubled from 25 percent to 50 percent on June 4.
Fireworks that are imported from China—which has been involved in a reciprocal tariff battle with the U.S.—are expected to cost more this Fourth of July holiday, and potentially beyond.
Fireworks
Roughly 99 percent of consumer fireworks and 75 percent of display fireworks come from China, according to the National Fireworks Association (NFA).
Current tariffs levied on China by the U.S. on Chinese goods, which were temporarily as high as 145 percent, currently sit at 30 percent.
Various varieties of fireworks are seen for sale at a fireworks stand in Arlington, Virginia, on July 2, 2018, ahead of the Fourth of July holiday.
Various varieties of fireworks are seen for sale at a fireworks stand in Arlington, Virginia, on July 2, 2018, ahead of the Fourth of July holiday.
SAUL LOEB/AFP via Getty Images
In an April 3 letter jointly sent by the NFA and National Pyrotechnics Association to Trump, they warned of "a narrow seasonal window" and how not only this year's Fourth of July festivities but also those in 2026 will be negatively affected.
The letter stated: "Fireworks businesses rely on a single, very short, selling season, and any disruption could be devastating. Many of these businesses are multi-generational, some with over 130 years of history, employing Americans who have dedicated their lives to this industry. Tariffs will not incentivize U.S. production—they will only increase costs. The reality is that there are no manufacturing alternatives available outside of China."
Some industry leaders warn that displays, which typically cost between $7,500 and $15,000, may increase by $5,000 and $15,000 per display.
"Nothing says July 4 like fireworks," Ibrahim AlHusseini, managing member of The Husseini Group, told Newsweek. "And 99 percent of fireworks are imported from China. This heavy reliance on imports makes the industry highly sensitive to tariffs."
Barbecues/Grills
Steel and aluminum tariffs affect those who purchase new barbecue grills or those who already have grills but may need a new propane tank.
A June report published by the U.S. Chamber of Commerce, in association with Father's Day, noted that tariffs raise the average $550 cost of a mid-range grill to roughly $715, or a tariff tax of $165.
Food
The Wells Fargo Agri-Food Institute in a June report found that the average cost of a Fourth of July gathering with 10 people is $130—or 2.2 percent higher than last year, according to USA Today.
Food costs are up, too, due to other countries fighting back on tariffs and homing in on agricultural exports. Ground beef is up 7.4 percent over last year, said Wells Fargo, and chicken would make for a cheaper option due to more supply.
Even barbecue sauce is up 2.3 percent.
What People Are Saying
Ibrahim AlHusseini, managing member of The Husseini Group, told Newsweek: "The good news is that for America's 250th birthday, many retailers had the forethought to stock up ahead of the escalation, allowing most prices to remain stable. With gas and cookout prices down, I don't see tariffs having any material impact on the cost of the holiday."
NFA President Stacy Schneitter Blake to KCTV (Kansas City) in April: "We've never seen anything this critical. There's been containers on hold in China. At this point, we're just not shipping anymore into the country right now."
Pro-Democratic House Majority PAC National Press Secretary Katarina Flicker in a statement: "The GOP tariffs are raising costs on American families, plain and simple, and House Republicans are too spineless to say a word—even as their own constituents pay the price. Come November 2026, HMP will make sure every vulnerable House Republican is held accountable for breaking their promise to lower costs."
What Happens Next
Prices of beer, wine and spirits, in addition to paper goods and party supplies, are also subject to tariffs.
Concerns that tariffs can surge on that July 9 deadline remain.