Economy

US tariffs drive up costs for Halloween industry

Collage Kursiv.media, photo editor: Serikzhan Kovlanbayev

Businesses in the Halloween sector are struggling under higher U.S. import tariffs on Chinese goods, with increased costs passed on to retailers and consumers, according to CNN.

Chris Zephro, co-founder of Trick or Treat Studios in Santa Cruz, California, said his company has already paid more than $800,000 in tariffs this year. The company supplies masks, props and costumes to over 10,000 retailers worldwide. It has laid off 15 employees for the first time in its 15-year history. Zephro, also treasurer of the Halloween and Costume Association, noted that about 90% of Halloween items involve materials or production from overseas. Much of this production is in China.

Earlier this year, U.S. tariffs on Chinese imports briefly surged to over 100% before dropping to 30%. The shift led many importers to halt orders, creating tighter supplies and higher prices. As a result, families in the U.S. should expect to pay more for Halloween shopping this year. The National Retail Federation estimates shoppers will spend a record $114 per person for the holiday this year — up $11 from 2024.

Retailers like Ryan Goldman of Phantom Halloween in California are trying to absorb some of the extra costs. However, certain products will inevitably be more expensive, particularly adult costumes. Large props and complex decorations have been scaled back due to higher import prices.

The White House argues that tariffs are meant to strengthen U.S. manufacturing and protect American workers. Industry members say that these measures harm small and mid-sized businesses, as they have no domestic production alternatives. Some items from Mexico, Vietnam, India or the U.K. have been less affected. Manufacturers emphasize that reshoring U.S. production would require significant investment in infrastructure and materials.