Fireworks Could Fizzle On July 4th Celebrations As Tariffs Heat Up

Forbes

20 hours ago

Fireworks explode over the Hudson River to celebrate Independence Day in New York, the United States, on July 4, 2024. (Photo by Li Rui/Xinhua via Getty Images) Xinhua News Agency via Getty Images
Enjoy your Fourth of July fireworks this year—there's a chance that next year's displays could go dark in some cities, thanks to a new round of tariffs.
The U.S. gets almost all of its fireworks from China. And I really do mean almost all. About 99% of fireworks sold in the U.S. come from China—that's a huge chunk of the $2 billion industry in the U.S.
Tariffs, especially those on China, have been a central theme of President Trump's economic policy. The Trump administration raised tariffs on Chinese imports as high as 145% earlier this year before dropping the rate to 30% in May (that's on top of the existing 25% tariffs for most goods). The two countries reached something of an agreement in May, but that truce is slated to end in mid-August. It's uncertain where the numbers might land after that time.
During the last trade war, Trump exempted fireworks from the tariffs. It's unclear whether that might be in the cards again, but chatter out of the White House seems to indicate that exemptions might be limited. Trade Organizations React
The National Fireworks Association notes on its website that the result is that 'the fireworks industry remains in a highly fragile state.' The NFA, a section 501(c)(6) tax-exempt organization formed in 1995 to promote the fireworks industry, has urged its members to reach out to their Congressional Representatives, writing, 'The livelihoods of thousands of Americans and the future of the fireworks industry depend on it.'
The leading fireworks industry trade association in the country, the American Pyrotechnic Association (APA), has also released several statements including a press release regarding 'shifting tariff rates that threaten the viability of small fireworks businesses and the broader supply chain that supports American celebrations.' The 30% tariff, the organization, claims, 'threatens to shutter small fireworks businesses nationwide and could undermine preparations for America's 250th anniversary celebrations in 2026.'
The APA is urging the Trump administration and the Office of the U.S. Trade Representative to consider an exemption or a lower rate.
The uncertainty and change have already impacted the industry. According to the APA, the tariffs were levied so late in the preparation for the 2025 Fourth of July season that many businesses were not contractually able to pass on the increase in cost to consumers. While some in the industry will raise prices to recover costs, many professional fireworks display companies are locked into long-term contracts, meaning they cannot adjust prices and will lose money as they absorb increases due to tariffs. That can be problematic in an industry where profit margins are already slim. Are There Other Options?
Why not just find other suppliers? It's not that easy, since China dominates the market. That's not just because of cheap labor—fireworks were actually invented in China. Around 200 B.C., the Chinese accidentally invented firecrackers by tossing bamboo into fire. Bamboo stalks have air pockets that can expand and blow up in extreme heat—causing a loud bang.
Chemists became more creative, adding in sulfur, charcoal, and potassium nitrate. When the powder was packed into bamboo stalks or paper tubes and lit on fire, they created quite the explosion, useful for scaring off wild animals and evil spirits. By the 12th century, fireworks had been fine-tuned and were shot off in China's imperial court for fun. A few hundred years later, fireworks made their way to Europe before eventually being imported to the U.S., something that's happened ever since.
And it's not possible to simply open production in the U.S.—there are limited raw materials available to make fireworks and there are no factories or trained workers who can handle the potentially dangerous products. In addition, the industry is seasonal, making a year-round factory largely unsustainable (even China doesn't keep its factories open year-round because of the heat).
Rather than bringing back jobs, APA's president Michael Ingram and NFA's president Stacy Schneitter-Blake, wrote in a letter to President Trump, 'tariffs will only drive-up costs for American businesses, local governments, and consumers.' Impact
Who cares the most? Likely a lot of folks in my backyard—Philadelphia has big plans to celebrate the nation's 250th birthday in 2026 which will also happen around the same time as the 2026 FIFA World Cup. Birthday festivities are also planned in cities like Washington, D.C. and New York City—the Big Apple plans to welcome tall ships of the world as part of their celebration, drawing millions in a ceremony that is certain to include some fireworks.
Skipping out on fireworks would be a break with history. Americans have celebrated July 4th with fireworks every year since 1777 (although that year, the fireworks were one color: orange). That was at the suggestion of John Adams, who wrote in a letter to his wife, Abigail, 'I am apt to believe that it will be celebrated, by succeeding Generations, as the great anniversary Festival... It ought to be solemnized with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more.' The first such fireworks display to commemorate American Independence was held in Philadelphia—other cities and towns soon followed.
The tradition doesn't come cheap and boosting budgets to accommodate the tariffs will likely not be popular.
Some cities and planners are waiting to see what happens, but that approach could backfire. According to the APA, most fireworks imports happen within the first five months of the year since they are shipped from China, and fireworks businesses rely on a single short selling season. That won't give many businesses time to react once the tariffs are again reset.
Still others are trying to stock up on fireworks in advance—a particularly risky pursuit due to storage challenges.
The delays and tariffs may not only be costly for state and local governments. Other organizations may cut back or eliminate displays—and nonprofit organizations such as churches, scout troops, and veterans' groups that rely on fireworks sales won't be able to include as many in fundraisers. The irony, the APA and NFA note, is that the tariffs will harm the very communities that have come to embrace these celebrations. Forbes As U.S.-Canada Trade Wars Heat Up, Here's What You Need To Know About Tariffs By Kelly Phillips Erb