A blog main image from HEX Fireworks about the effect of Tariffs on the US firework industry

The US firework industry faces major challenges in the coming months.

April 24, 2025

The Trump Administration’s love of tariffs has potentially disastrous consequences for the US firework industry.

71 days from now, American Independence Day will see roughly 17,000 firework displays fired in the US¹. Consumer sales of fireworks were worth $2bn to the American economy in 2023, with 70% used by nonprofit organisations¹. The funds raised by their displays significantly help to bolster their budgets for the year ahead. But this is all in jeopardy, with the tariffs now at 145%. Talking to our suppliers in China, they deem that it will cause the consumer side of the industry to be the worst affected.

From February 2024 to January 2025, the US imported $508 million of fireworks, $481 million of which came from China². You can imagine how such price rises will impact the US firework industry. To put this into perspective, Spain is the second largest importer from China at $9.74 million, a mere 1.9% of the US figure².

Various trade bodies are fighting tirelessly to get fireworks exempted to save the numerous businesses that rely on the July 4th sales. As of the 9th of April, the National Fireworks Association and the American Pyrotechnics Association reported that 2,584 letters had been written to the Administration so far by members, and the bodies have been urgently seeking meetings with Administration representatives to gain an exemption⁴. In America, there are a lot of pop-up stores for the season, often referred to as Mom and Pop stores. These rely on wholesalers distributing throughout the country and being able to sell at competitive, attractive prices. Luckily, many importers bring in stocks throughout the year, but the big push is in the next few weeks. So, imagine the scenario - you have warehouses bursting at the seams and Chinese factories racing to finish orders and get them on the sea in time to meet customers’ orders, and then WHAM, the tariffs hit.

I’ve heard from a supplier in China that one US importer has stopped 180 containers of fireworks from leaving China. The dilemma of letting them depart is twofold. If they leave China, they must pay the tariff on entry to the US. Until the tariff is paid, Customs won’t clear them from the dock. So firstly, the question for the importer is whether they can be sure of selling the goods at the inflated price. Secondly, would they be taking a gamble on whether the exemption might be put in place after paying the tariff? Consequently, in that instance, they would be left with higher-priced goods compared to their competitors.

Brice Zoldan, President of Phantom Fireworks, one of America’s largest importers, has asked for production to be stopped in China while he waits to see what is happening³. Others have sent containers back from Shanghai to the warehouses to be unloaded. One American supplier I spoke to said she has stock waiting to leave and has until the end of the month to decide on whether to get the container put on a vessel. For the time being, she has stopped selling fireworks as they can’t take the risk if they get the strategy wrong.

Think of it from the Chinese perspective, too. The Chinese suppliers now have stock ready to ship at their peak time for US production, and now customers are asking them to hold onto it while the situation settles. Conversely, some Chinese factories are reluctant to ship because they are worried that companies won’t pay the tariff on arrival, thus resulting in containers being left stranded.

There is a reasonable level of stock in America now, but the severe impact will be for the next sales season. If this tariff level is maintained, it will hit sales hard and consequently affect many businesses. Many observers can foresee companies consolidating to ride out the storm¹. 2026 is the 250th anniversary of American independence; the celebrations are in the process of planning on a grand scale, with the Trump Administration wanting events from coast to coast.

Many ask - “Surely Americans can make the fireworks they need?” The driving philosophy of the tariffs is the belief that manufacturing will be ‘on-shored’ and start a new golden age of manufacturing in America. The trade associations have tackled this, too, in their letters and representations. It can’t be done. Price hikes are hitting the US firework industry, and yet it doesn’t have the means or facilities to make fireworks domestically to counter the situation. But why not?

There are a number of factors at play here.

• Firework manufacturing can only be written down and taught so far. A lot of the skill of making is developed through doing and being shown. For example, star-making alone is a highly skilled process. Knowing when the stars in the roller drum are wet enough to take on more powder. If they become too moist, one big lump can form and must be disposed of. Getting the final prime layer correctly powdery is critical so it lights easily. So much is handed down from person to person and through learned techniques.

• Raw materials must be sourced from around the world. Acaroid Resin from Australia, Potassium Perchlorate, is made in several countries but not surprisingly in massive quantities in China. MgAl alloys are often sourced from China. All these imports are subject to tariffs.

• Fireworks are made to be as cost effective as possible. Liuyang in Hunan Province is the beating heart of production in China. There are lots of factories, often working collaboratively to maximise production output and efficiency. The older generation carries out many operations because the younger people want to work in cleaner, more lucrative industries. They often live in apartment blocks onsite. The salary of a Chinese worker, although they are skilled, is comparatively very low compared to US wage rates.

• American-made fireworks were developed by Italian immigrants from the 1940s to 1960s, but this has seen a dramatic decline caused by increasing regulation from the Occupational Safety and Health Administration (OHSA) and the Environmental Protection Agency (EPA)¹

Even if the Americans overcame all these hurdles, it would be years before suitable infrastructure was in place, and, assuming a willing workforce, the costs combined would likely be equivalent to the tariffs already in place, if not more.

The American love of fireworks has endured for decades but what about the 4th of July? Well, it wouldn’t be the same without the thousands of firework displays and all the celebrations that accompany them.

We sincerely hope that our firework friends across the pond get the exemption they desperately need, and soon, so that the skies above America can be lit up once more with 'the rockets’ red glare' and 'bombs bursting in air'.

Chris Adlam

Citations:

1. Chris Nesi,

Perilous fight: Fireworks industry urges Trump to consider tariff exemption as it warns July 4th celebrations could be imperiled nationwide.

15th April 2025

https://nypost.com/2025/04/15/us-news/fireworks-industry-urging-trump-to-consider-tariff-exemption/

Accessed: 19th April 2025

2. Business and Economy