Trump tariffs could dampen July Fourth fireworks for 2026

Axios

2 days ago

As Americans prepare to light up the skies this Fourth of July, the fireworks industry is sounding the alarm: without tariff relief, the nation's 250th birthday celebration in 2026 could be in jeopardy.
Why it matters: A looming tariff burden on Chinese imports is sparking fears of higher costs, supply shortages and even canceled shows.
"If the tariff increases again back up to triple digits — let's say 145% — it will cripple this industry," Julie Heckman, executive director of the American Pyrotechnics Association, told Axios.
The big picture: 99% of consumer fireworks and 90% of professional display fireworks used in the U.S. come from China, Heckman said.
A 25% to 145% tariff imposed under a trade provision known as Section 301 is adding strain to the supply chain and pricing.
China typically halts fireworks production during hot summer months due to safety risks, narrowing the window for U.S. importers to place and receive orders.
Zoom in: Bruce Zoldan, CEO of Ohio-based Phantom Fireworks, told Axios that his 100 stores have seen a big surge in recent days. Over the weekend, Phantom also opened 1,600 seasonal stands and tents.
"People are starting to buy now," he said, noting sales are almost 30% higher per day than last year. "If you wait until July 1st, 2nd, or 3rd, half the merchandise is sold out and the lines are long."
Phantom — the nation's largest consumer-based retail fireworks company, supplying thousands of stores nationwide like Home Depot — received 85% of its inventory prior to tariffs, Zoldan said.
"There could be a few minor changes, but for the most part, our prices are stable with the last year," he said. "Now, going into next year that's another story."
State of play: Industry leaders say they need an exemption like the one President Trump granted in 2019 to move forward with planning for 2026 and beyond.
"Thirty percent is not sustainable — not going into what we think will be the biggest celebration, consumption of fireworks ever on record," Heckman told Axios.
"This isn't political for us," Heckman said. "We support the president 100%, and themajority of firework entities and their customers — the folks coming in to celebrate Independence Day — they are his base."
The other side: The White House pushed back on the fireworks industry's plea for tariff relief.
"Real prosperity and patriotism isn't celebrating the independence of our country with cheap foreign-made firecrackers and trinkets," White House spokesman Kush Desai said in a statement to Axios. "It's having a country with booming Main Streets, a thriving working class, and robust manufacturing."
Yes, but: Heckman said moving fireworks production stateside is impossible, especially for 2026.
"Even if we brought some manufacturing back to the U.S., it wouldn't be optimal," Heckman said, noting it's highly dangerous, labor-intensive and regulated.
"We could never produce the volume the U.S. relies on for celebrating Independence Day."
What's next: Heckman said her organization has been advocating on Capitol Hill and has a meeting in late July with the U.S. Trade Representative's office.
"Right now, we're at a standstill," Zoldan said of the fireworks industry. "We're getting close to the point where we have to place our orders for next year, and they have to start manufacturing right after Labor Day."
Zoldan said any delay past Labor Day for submitting orders means a certain percentage won't be manufactured in time to get to America.