INDIANA — As many gather to celebrate Independence Day, fireworks are a cherished tradition for countless families. However, ongoing tariffs on Chinese imports could dim these celebrations, affecting both prices and availability for consumers and local businesses alike.
For Darion Harris, fireworks symbolize cherished childhood memories with family.
"For me, personally, fireworks are always something as a kid I did with my family," Harris reflects. Yet, with rising costs anticipated, the tradition may soon come at a steeper price.
Barbara Whiteside, owner of Circle City Fireworks, voiced her concerns about the future of her business amid these tariff challenges.
"What you're paying for a firework today, let's say this box is $30 next year, this box will be $60," she stated, highlighting the potential for significant price increases.
Circle City Fireworks has three different locations across the Indy-Metro area.
Like many others, they prepared at least a year in advance for this holiday season, getting their products before most of the tariffs were put in place.
“We did have to get some stuff after the tariffs were in place, but we ate the cost," Whiteside explained.
As a result, consumers are not currently facing price hikes, but she warns, "If the current tariffs do stay in place, what we're looking at is probably a 100% price increase."
Most professional and consumer fireworks sold in the United States are imported from China, where tariffs remain higher than in previous years.
"The most recent set of tariffs, they were up 145% at one point, now they're down to about 35%, so that's kind of where we are in terms of the fireworks industry,” said Nandini Gupta, an assistant professor of finance at Indiana University.
Whiteside also told WRTV that business has been good this year, but uncertainty remains regarding next season.
“It's definitely going to affect us… We'll probably cut back, because we think the consumers will probably cut back on what they buy," she noted.
Illustrating the ripple effect that tariffs can have throughout the supply chain, Gupta adds, "This shock is going to be felt all along the supply chain, ending with the consumer."
Circle City Fireworks is a family-owned business that prides itself on affordable pricing. Amid all the uncertainty, Whiteside advises customers to stock up now to avoid running out of fireworks next year.
"We're encouraging our customers that are worried about the increases to do is just stock up for this year to have some left over for next year. We don't want fireworks to become unaffordable, but, you know, there's only so much that we can do."
Looking ahead, experts forecast an increase in demand for fireworks next year, coinciding with the United States marking its 250th anniversary.
However, if tariffs remain in place, potential shortages could not only impact prices but also product availability and large-scale displays, posing a significant challenge for celebratory events across the country.
