Why Donald Trump's tariffs on China may dampen US' July 4 celebrations

America celebrates its independence every July 4.

Much of this revolves around cookouts and family get togethers across the country.

However, what most Americans really look forward to on July 4 are the elaborate and spectacular fireworks displays that punctuate the celebrations.

However, this year, the July 4 holiday may lose a bit of its spark.

But what happened? What do we know?

Let’s take a closer look:

A brief history of fireworks

First, let’s take a brief look at fireworks.

Fireworks are widely believed to have been invented in China around 2000 years ago.

It originated with people in ancient China throwing bamboo stalks into fires.

They did this to ward off evil spirits.

Travellers would also carry bamboo sticks to ward off animals.

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Then, in the 9th Century, gunpowder was invented.

People would then place this powder in bamboo stalks.

This is likely when the world’s first manufactured fireworks were created.

By now, fireworks were also being used to celebrate birthdays and weddings.

America and fireworks

The European settlers who came over to the new world brought fireworks – and the love for such displays – with them.

The day after America declared its independence from Great Britain, John Adams, one of the Founding Fathers of the United States, wrote to his wife Abigail, “It ought to be solemnised with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more.”

Indeed, fireworks were part of the US’ first Independence Day celebrations in Philadelphia.

In the 18th Century, politicians would often use a fireworks display to try to gather a crowd.

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A study showed that the US last year imported around $450 million worth of fireworks from China.

In 2023, US consumers bought 246.5 million pounds of fireworks.

In 2022, that figure was at 436.4 million pounds.

Most fireworks were imported in the state of Missouri, followed by Kansas and Nebraska.

All three states, incidentally, have some of the most lax fireworks regulations in the USA.

Wyoming, Alabama, South Dakota, Montana, South Carolina, Ohio and North Dakota are the other states that import fireworks.

Only Massachusetts has a complete ban on fireworks.

Ordinarily this would be no problem for most Americans.

However, over 95 per cent of America’s fireworks are imported from China — on which Trump has imposed tariffs.

Julie Heckman, chief of the American Pyrotechnics Association, told NPR that China is essentially the sole provider of fireworks for the United States.

“China is the global supplier of fireworks”, Heckman said. “For the US market, 99 per cent of the backyard consumer fireworks are manufactured in China and 90 per cent of the professional display fireworks are manufactured in China.”

Heckman told NPR that Trump’s tariff on Chinese goods, announced on 2 April during ‘Liberation Day’, could not have come at a worse time.

She said that some firms simply stopped taking deliveries.

The study showed that even if Trump keeps his tariffs on China at 30 per cent, the cost of importing fireworks last year would have gone from $452 million to $587.7 million.

If Trump instead kept the sky-high 145 per cent tariff, that would inflate the cost from $452 million to around $1.1 billion.

That would essentially nearly triple the price of fireworks for customers and firms next year.

Most people and companies are adequately stocked up for 2025.

“The tariffs were levied so late in the preparation for the 2025 Fourth of July season that many businesses were not contractually able to pass on the increase in cost,” Heckman said in June.

John Sorgi, who runs American Fireworks Company in Ohio, predicted next year could see far less impressive fireworks displays.

“I mean, your $50,000 show is going to look like a $30,000 show. Your $30,000 dollar show is going to look like a $15,000 to $18,000 show,” Sorgi told NPR. “And then, when you get down to the smaller shows, which are a lot of the shows, those shows will probably just have to say, ‘We’re not doing it’”.

However, some people are already feeling the effect with less choices on offer at some stores and consumers having to shell out more.

Bill Weimer, vice president of Phantom Fireworks, a major vendor, told CBS, “On about 30 per cent of our products, there’s going to be some effect in the price.”

However, firework displays in the immediate future could also be affected.

As Steve Houser, president of Red Rhino Fireworks in Missouri told Bloomberg, “There are very real concerns as to Labour Day, Christmas and New Year’s celebrations that happen this fall and winter.”

What do experts say?

Experts say that the real hit to consumer wallets could come in 2026.

Which would be ironic given that next year would be the 250th anniversary of the United States and the demand for fireworks would skyrocket.

Though larger companies would remain largely insulated, it would be the smaller firework dealers that would be most badly hurt.

Aeron Calkins, owner of Olde Glory Fireworks in Denver, told Denver7.com, “The big guessing game this year is whether to order fireworks for next season now or wait and see what happens with the tariffs”.

“Normally, I don’t try to tell people to stock up, but this is a year to maybe think about it”, he added

Many are simply pinning their hopes on Trump himself – who is known to be fond of such displays – to reach a trade deal with China and do away on such tariffs ahead of the anniversary next year.

“We know he loves fireworks”, Heckman told NPR. “And he’s been talking about America’s salute to the 250th from Day One. And our industry wants to be a major player in that”.

Though Trump and China in June announced an agreement to deescalate trade tensions, details of the deal remain under wraps.

The two countries have been at odds over tariffs for months with the Trump steadily increasing the tariffs levied on China and Beijing at one point refusing to respond.

Whatever happens next, time is running out.

“With limited manufacturing time left for 2026 and a projected windfall of demand, we in the industry are very concerned for the future,” Houser told Bloomberg.

With inputs from agencies