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Hindustan Times
11 hours ago
- Business
- Hindustan Times
Fireworks will light up this Fourth of July. Next year could be different if tariff talks fizzle
ALBUQUERQUE, N.M. — Like clockwork, Carla Johnson sends out letters every spring asking for donations to help pay for the annual Fourth of July fireworks show that draws tens of thousands of people to New Mexico's largest lake. Fireworks will light up this Fourth of July. Next year could be different if tariff talks fizzle And she has no reservations about doling out verbal reminders when she sees her patrons around town. There's too much at stake to be shy about fundraising when donations collected by Friends of Elephant Butte Lake State Park are what make the tradition possible. But even Johnson's ardent efforts as the group's fundraiser might not cut it next year if the U.S. and China remain locked in a trade war. With nearly all of the aerial shells, paper rockets and sparkly fountains that fuel America's Fourth of July celebrations being imported from China, volunteer groups like Johnson's and cities big and small have been closely watching the negotiations. A 90-day pause on what had been massive tariffs brought some temporary relief, but industry experts acknowledge that the tiff has lit a fuse of uncertainty as the price tag for future fireworks displays could skyrocket if an agreement isn't reached. There were similar concerns in 2019 as trade talks between the U.S. and China dragged on. Industry groups had called on officials then to exempt fireworks from escalating tariffs. The American Pyrotechnics Association and the National Fireworks Association reignited the lobbying effort this spring, noting in letters to President Donald Trump that fireworks play a crucial role in American celebrations. The groups say the industry is made up mostly of family-owned companies that are often locked into long-term contracts that leave them unable to raise prices to offset cost surges brought on by higher tariffs. And there are few options for sourcing the more than 300 million pounds of fireworks needed to feed demands. China produces 99% of consumer fireworks and 90% of professional display fireworks used in the U.S., according to the A. 'I think overall it's the uncertainty,' said Julie Heckman, the A's executive director. 'Yeah, we have a 90-day pause, but are the negotiations with China going to go well? Or is it going to go sky-high again? You know, triple digits. It's very hard for a small business to plan." Fireworks have their roots in China. To ward off evil spirits, people would throw bamboo stalks into a fire, causing them to pop as the air inside the hollow pockets heated up. These early firecrackers evolved into more sophisticated fireworks after the Chinese developed gunpowder in the 9th century. By the 15th century, Europe was using fireworks for religious festivals and entertainment. In 1777, they were used in Philadelphia and Boston for what were the first organized Independence Day celebrations. Now, fireworks are synonymous with the summer holiday and with ringing in the new year. Shows have become elaborately choreographed displays that are often synced to live music. In Nashville, the Music City's award-winning symphony orchestra puts its own spin on the festivities. In New York City, organizers of the Macy's show will fire off 80,000 shells, with some reaching heights of 1,000 feet . The National Park Service promises a spectacular show on the National Mall in Washington, D.C. At Elephant Butte in southern New Mexico, they're going old school and will light the fireworks by hand. Charlie Warren, vice president of the Friends of Elephant Butte Lake State Park, said it's like spectators are getting two shows at once as the colors reflect on the water below and the loud booms reverberate off the lake. Johnson, who also serves as the group's treasurer, gets emotional describing the experience. 'Oh man, in my heart and sometimes out loud, I'm singing the Star-Spangled Banner. I'll sing it out loud to the top of my lungs when I watch that show," she said. 'It makes you proud to be in this country, and we're celebrating our freedom, and I'm going to start crying now. Don't get me started.' Organizers in Nashville ordered fireworks for that show over a year ago so they weren't affected by the tariffs. It was the same in one of New Mexico's largest cities, where Rio Rancho officials planned to spend a little more to go bigger and higher this year. In Oklahoma, Big Blast Fireworks supplies nonprofit groups so they can fundraise by setting up fireworks stands. The company received its first container from China in January before the tariffs hit. The second container arrived in February and was subject to a 10% tariff. The third container was put on hold to avoid the highest tariffs, meaning inventory could be tight later this year if nothing changes. 'As a small business, we are passionate about watching our price points and intentional about passing along as much savings on to customers as possible," said Melissa Torkleson, a managing partner at Big Blast. With some orders on hold, industry experts say Chinese manufacturers throttled back production as warehouses filled up. The backup in the supply chain also has resulted in competition for shipping space aboard ocean vessels, and Heckman, the A's director, said it will take much more than flipping a light switch to ease either situation. If the trade war drags on, she said, there are ways that show organizers can adjust and spectators might not notice. A minute or two could be shaved from a show or certain types of fireworks could be substituted with less expensive options. As for this year, Warren said the price tag for the Elephant Butte show was unchanged and he and Johnson can't wait to see spectators lining the shoreline, on the surrounding hillsides and on boats bobbing on the lake. The mission every year is to make sure 'that the T's are all crossed," Warren said. "Because this community would not be happy if this show didn't come off,' he said. This article was generated from an automated news agency feed without modifications to text.
Yahoo
02-05-2025
- Business
- Yahoo
Liberation Day might have cost you Independence Day: Firework costs skyrockets on Trump tariffs
Fireworks wholesalers and distributors are halting the shipment of goods into the U.S. after President Donald Trump announced his 'Liberation Day' tariffs earlier this month. China is the world's largest producer of fireworks, but goods from the country have been socked by Trump with a 145 percent tariff, forcing American distributors to stop purchasing the products from the country. That means Americans might end up going without fireworks for this year's July Fourth holiday, according to a report from NBC News. Days after announcing the tariffs, Trump implemented a 90-day pause for most countries, but raised China's to the three-digit figure. According to the National Fireworks Association, Trump's new trade policy went into effect as companies were ordering the last of their holiday fireworks. About 75 percent of fireworks used in shows and 99 percent of consumer fireworks come from China. Many countries say the tariffs are too costly and it's unlikely consumers would take on significant price hikes, reported NBC News. Fireworks aren't the only products at risk. The tariffs stand to make everyday products more expensive, particularly toys for children as small business toymakers struggle to navigate the tariffs. About 64 percent of small toy companies and 80 percent of mid-sized toy companies have said they've canceled orders due to the tariff-hiked prices. Additionally, half of those companies also said they would go out of business within weeks or months if Trump's China policy doesn't change, according to a survey from the Toy Association. The president dismissed those concerns during a Cabinet meeting Wednesday, saying ships coming into the country were largely carrying products 'we don't need.' 'Somebody said, 'Oh, the shelves are going to be bare.' Well, maybe the children will have two dolls instead of 30, you know?' Trump commented, adding, 'And maybe the two dolls will cost a couple of bucks more than they would normally.' The New York Post mocked Trump's comments by putting a Barbie on its front cover Thursday with the headline: 'Skimp on the Barbie.' Stacy Schneitter Blake, president of the National Fireworks Association, told NBC News in a statement: 'Shipping has essentially stopped. While there's still a good amount of fireworks in the U.S. from wholesalers who stocked up earlier, we're still expecting shortages because many of us typically rely on shipments that would have arrived over the past month.' Schneitter Blake said her business had to halt several shipments that wouldn't have reached the U.S. before the implementation of tariffs. 'With tariffs this high, bringing fireworks in just isn't feasible, so we've had to leave shipments overseas,' she noted. Stephen Vitale, who runs Live Events, a company that does more than 3,000 fireworks shows a year, said he's going to start getting nervous if the policy doesn't shift in the next 30 to 45 days. 'We've placed orders for 2026, but based on the tariffs, we've paused any production until we have some certainty.' It might already be too late this summer to meet demand across the country, even if tariffs are reduced. In China, the manufacturing of fireworks stops due to rising temperatures, which could leave consumers waiting for fireworks until the following year.
Yahoo
02-05-2025
- Business
- Yahoo
Liberation Day might have cost you Independence Day: Firework costs skyrockets on Trump tariffs
Fireworks wholesalers and distributors are halting the shipment of goods into the U.S. after President Donald Trump announced his 'Liberation Day' tariffs earlier this month. China is the world's largest producer of fireworks, but goods from the country have been socked by Trump with a 145 percent tariff, forcing American distributors to stop purchasing the products from the country. That means Americans might end up going without fireworks for this year's July Fourth holiday, according to a report from NBC News. Days after announcing the tariffs, Trump implemented a 90-day pause for most countries, but raised China's to the three-digit figure. According to the National Fireworks Association, Trump's new trade policy went into effect as companies were ordering the last of their holiday fireworks. About 75 percent of fireworks used in shows and 99 percent of consumer fireworks come from China. Many countries say the tariffs are too costly and it's unlikely consumers would take on significant price hikes, reported NBC News. Fireworks aren't the only products at risk. The tariffs stand to make everyday products more expensive, particularly toys for children as small business toymakers struggle to navigate the tariffs. About 64 percent of small toy companies and 80 percent of mid-sized toy companies have said they've canceled orders due to the tariff-hiked prices. Additionally, half of those companies also said they would go out of business within weeks or months if Trump's China policy doesn't change, according to a survey from the Toy Association. The president dismissed those concerns during a Cabinet meeting Wednesday, saying ships coming into the country were largely carrying products 'we don't need.' 'Somebody said, 'Oh, the shelves are going to be bare.' Well, maybe the children will have two dolls instead of 30, you know?' Trump commented, adding, 'And maybe the two dolls will cost a couple of bucks more than they would normally.' The New York Post mocked Trump's comments by putting a Barbie on its front cover Thursday with the headline: 'Skimp on the Barbie.' Stacy Schneitter Blake, president of the National Fireworks Association, told NBC News in a statement: 'Shipping has essentially stopped. While there's still a good amount of fireworks in the U.S. from wholesalers who stocked up earlier, we're still expecting shortages because many of us typically rely on shipments that would have arrived over the past month.' Schneitter Blake said her business had to halt several shipments that wouldn't have reached the U.S. before the implementation of tariffs. 'With tariffs this high, bringing fireworks in just isn't feasible, so we've had to leave shipments overseas,' she noted. Stephen Vitale, who runs Live Events, a company that does more than 3,000 fireworks shows a year, said he's going to start getting nervous if the policy doesn't shift in the next 30 to 45 days. 'We've placed orders for 2026, but based on the tariffs, we've paused any production until we have some certainty.' It might already be too late this summer to meet demand across the country, even if tariffs are reduced. In China, the manufacturing of fireworks stops due to rising temperatures, which could leave consumers waiting for fireworks until the following year.
The Independent
01-05-2025
- Business
- The Independent
Liberation Day might have cost you Independence Day: Firework costs skyrockets on Trump tariffs
Fireworks wholesalers and distributors are halting the shipment of goods into the U.S. after President Donald Trump announced his ' Liberation Day' tariffs earlier this month. China is the world's largest producer of fireworks, but goods from the country have been socked by Trump with a 145 percent tariff, forcing American distributors to stop purchasing the products from the country. That means Americans might end up going without fireworks for this year's July Fourth holiday, according to a report from NBC News. Days after announcing the tariffs, Trump implemented a 90-day pause for most countries, but raised China's to the three-digit figure. According to the National Fireworks Association, Trump's new trade policy went into effect as companies were ordering the last of their holiday fireworks. About 75 percent of fireworks used in shows and 99 percent of consumer fireworks come from China. Many countries say the tariffs are too costly and it's unlikely consumers would take on significant price hikes, reported NBC News. Fireworks aren't the only products at risk. The tariffs stand to make everyday products more expensive, particularly toys for children as small business toymakers struggle to navigate the tariffs. About 64 percent of small toy companies and 80 percent of mid-sized toy companies have said they've canceled orders due to the tariff-hiked prices. Additionally, half of those companies also said they would go out of business within weeks or months if Trump's China policy doesn't change, according to a survey from the Toy Association. The president dismissed those concerns during a Cabinet meeting Wednesday, saying ships coming into the country were largely carrying products 'we don't need.' 'Somebody said, 'Oh, the shelves are going to be bare.' Well, maybe the children will have two dolls instead of 30, you know?' Trump commented, adding, 'And maybe the two dolls will cost a couple of bucks more than they would normally.' The New York Post mocked Trump's comments by putting a Barbie on its front cover Thursday with the headline: 'Skimp on the Barbie.' Stacy Schneitter Blake, president of the National Fireworks Association, told NBC News in a statement: 'Shipping has essentially stopped. While there's still a good amount of fireworks in the U.S. from wholesalers who stocked up earlier, we're still expecting shortages because many of us typically rely on shipments that would have arrived over the past month.' Schneitter Blake said her business had to halt several shipments that wouldn't have reached the U.S. before the implementation of tariffs. 'With tariffs this high, bringing fireworks in just isn't feasible, so we've had to leave shipments overseas,' she noted. Stephen Vitale, who runs Live Events, a company that does more than 3,000 fireworks shows a year, said he's going to start getting nervous if the policy doesn't shift in the next 30 to 45 days. 'We've placed orders for 2026, but based on the tariffs, we've paused any production until we have some certainty.' It might already be too late this summer to meet demand across the country, even if tariffs are reduced. In China, the manufacturing of fireworks stops due to rising temperatures, which could leave consumers waiting for fireworks until the following year.
NBC News
01-05-2025
- Business
- NBC News
Trump's 'Liberation Day' tariffs are threatening Independence Day fireworks
President Donald Trump's massive China tariffs are jeopardizing American fireworks shows, threatening to drive up prices and limit supplies. U.S. fireworks wholesalers and distributors say they've been canceling shipments from China for this year's July Fourth holiday. Some are also halting manufacturing in China of fireworks for next year's celebrations of the 250th anniversary of America's independence. Trump's April 2 tariff rollout, which he dubbed 'Liberation Day,' raised the effective import tax rate on nearly all Chinese goods to 145%, even after he walked back much of the other sweeping duties days later. Last month's chaotic trade policy swings occurred just as U.S. fireworks companies were preparing to receive their last July Fourth shipments from China, which makes around 75% of fireworks used in professional shows and 99% of consumer fireworks used in the United States, according to the National Fireworks Association. The companies say that the tariffs are too steep to absorb and that hiking prices on customers to offset them would make their products unaffordable. 'There's definitely a lot of urgency here for our industry, and it's a very, very serious situation,' said Michael Ingram, CEO of Fireworks Over America, a Missouri-based distributor. 'It would be a shame to have the skies go dark on the Fourth of July.' Trump's China tariffs have been having a ripple affect all across the U.S. economy, with retailers halting shipments of goods from China because of the high cost of the tariffs. Seasonal products, like toys for Christmas or costumes for Halloween, are at particular risk because of the limited window of time companies have to produce and import them. Trump dismissed the impact of the drop-off in shipments from China on Wednesday, saying ships "are loaded up with stuff, much of which, not all of it, but much of which we don't need.' 'Somebody said, 'Oh, the shelves are going to be bare.' Well, maybe the children will have two dolls instead of 30, you know?' he said at a meeting with his Cabinet. 'And maybe the two dolls will cost a couple of bucks more than they would normally.' Ingram said his company managed to get most of its July Fourth fireworks into the United States before the tariffs. But he halted shipment of 120,000 cases still in China that wouldn't have arrived in time. Some of those supplies were meant for a veterans group planning to use proceeds from the sale of the fireworks to fund its suicide prevention programs, he said. National Fireworks Association President Stacy Schneitter Blake said: 'Shipping has essentially stopped. While there's still a good amount of fireworks in the U.S. from wholesalers who stocked up earlier, we're still expecting shortages because many of us typically rely on shipments that would have arrived over the past month.' While most larger fireworks companies were able to get the bulk of their shipments in before the tariffs took hold, some smaller ones plan to scale back their displays. 'There are certainly companies that are smaller that might only order one or two containers for the season, and that product is coming in right now at 145% tariff, and they are in real trouble,' Ingram said. That most likely means higher prices and less selection for people buying fireworks from retailers and roadside stands this July Fourth, Schneitter Blake said. Her 130-year-old family business had to halt several shipments that wouldn't have arrived before the tariffs went into effect. 'With tariffs this high, bringing fireworks in just isn't feasible, so we've had to leave shipments overseas,' she said, adding that many others have paid to return shipments to warehouses rather than accept much pricier deliveries. The tariffs are also jeopardizing fireworks supplies for the nation's semiquincentennial in July 2026. Ongoing trade war uncertainty has led many companies to cancel orders for next year's shows, and Chinese plants have shut down production at a time when they should be ramping up, wholesalers and distributors said. 'You just can't stay in business like that — no one can,' said Greg Hebert, owner of Houston-based Adventure Fireworks. He said two bulk orders placed with his Chinese supplier arrived last month, narrowly escaping thousands of dollars in tariff charges. That cleared the way for the fireworks displays his corporate clients placed for this summer's celebration. But the tariffs have stifled growth plans for his company, which Hebert founded after the pandemic. 'Now we're having to wait, because we can't afford a container ship of consumer fireworks right now,' he said. Even if tariffs on fireworks were lifted soon, it could be too late to ramp up production in time to meet U.S. demand. By the summer, fireworks manufacturing in China shuts down because temperatures get too hot, after which production shifts to making products for the European and Chinese markets before it pauses again for the Chinese New Year. 'We're going to get very nervous if things don't shift in the next 30 to 45 days,' said Stephen Vitale, whose company, Live Events, has been in the fireworks business for five generations and does 3,600 fireworks shows a year. 'We've placed orders for 2026, but based on the tariffs, we've paused any production until we have some certainty.' Industry groups say they're asking the White House for tariff exemptions similar to ones they secured in 2019, during Trump's first trade war with China. The groups have met with administration officials and lawmakers but say they haven't received any commitments. 'The Administration maintains regular contact with business leaders, industry groups, and everyday Americans about our trade and economic policies,' White House spokesman Kush Desai said in a statement. 'President Trump, however, has been clear: if you're worried about tariffs, the solution is simple. Make your product in America.' That isn't a good option, said Julie Heckman, executive director of the American Pyrotechnics Association. 'It makes no sense to try to manufacture in the U.S. at this point,' she said. 'We don't have the raw materials, and nobody wants to do this kind of work. It's very dangerous to make an explosive, and it's very labor intensive.' Heckman added that production facilities require lots of land and safety regulation. Vitale's family used to make fireworks in the United States but stopped in the 1990s, partly because it couldn't compete with lower-cost Chinese rivals. 'If we got started tomorrow trying to bring back manufacturing, it would take two to three years to ramp up, and maybe we'd be able to plug 10% of the product demand,' he said. 'There's no one that could produce fireworks on the professional level and/or on the consumer level, at scale, like the Chinese.' Even if the tariffs were lifted in the coming days or weeks, there most likely wouldn't be enough time to get the rest of his product to the United States before July 4, given the lag time in shipping from China. Iowa Fireworks Co., which runs around 50 roadside stands across the state, recently canceled two container shipments from China, partner Zach Terhark said. But he wasn't able to halt a third. It's en route to the United States now, and Terhark is trying to figure out how to pay for the tariffs while holding out hope for some sort of exemption. Otherwise, he'll have to charge customers more. 'I support President Trump, I support what he's trying to accomplish, but for our industry it's just really bad timing, and we're just kind of stuck in the middle of this,' he said. 'There are a lot of industries like ours that are just kind of overlooked with all that is happening. A lot of seasonal businesses, you can't just pause. You've got to have your stuff or you're not going to have any sales.' Terhark added that his company's fireworks stands 'are run by Boy Scout troops, churches, families, schoolteachers — they're depending on this money in the summer to pay their bills, to go on vacation with their families. There are real people that are counting on this income.'
