Sky King Fireworks Group President Joe Vanoudenhove discusses the fireworks industry and the impact of inflation.
With their near-total reliance on Chinese imports, American fireworks companies have landed squarely in the crosshairs of President Donald Trump’s trade war with Beijing.
China manufactures 99% of the fireworks enjoyed in backyards and about 90% of the professional-grade displays that dazzle the skies around the globe.
The American fireworks industry warns that a 30% tariff imposed by the Trump administration on Chinese imports could fizzle preparations for the nation’s 250th birthday next year.
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In April, the tariff rate soared to 145% for fireworks as Washington and Beijing escalated trade threats. The following month, Trump implemented a 90-day pause, reducing the tariff to 30%. That temporary reprieve is scheduled to expire July 9.
Fireworks go off above the Lincoln Memorial, the Washington Monument and the U.S. Capitol building during the Independence Day fireworks display in Arlington, Virginia, July 4, 2024. (Celal Gunes/Anadolu via Getty Images)
“The current rate remains excessively high and unpredictable,” Julie Heckman, executive director of the American Pyrotechnics Association, told FOX Business. “Will the 30% tariff remain in place or potentially blow back up to triple digits?”
Heckman explained that the fireworks industry typically places orders several months in advance to account for snags in the industry’s complex and safety-sensitive supply chain. Fireworks require multiple modes of transportation — ships, trains and trucks — with safety inspections and regulatory checks at every step.
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“Small businesses ordered products at a certain price, then when the product was ready to ship, it was subject to an unexpected 20% tariff, or even worse, a 145% tariff,” Heckman explained. “How can a small business make sound decisions when the tariff rate can just suddenly change over night?”
Roberto Sorgi, who runs American Fireworks Company, said one of his orders — just a few thousand cases — got slapped with a 145% tariff.
“It wasn’t a good hit for us, but at the end of the day, we’re just going to take a full-fledged loss on it and blend it into our inventories, because we couldn’t pass that along to our customers,” Sorgi said.
Customers in a supermarket hold fireworks packaging in their hands ahead of New Year’s Eve. (Frank Hammerschmidt/picture alliance via Getty Images)
He added that consumers could expect to see an uptick in prices later in 2025.
“Come New Year’s Eve, we are looking at an average of 20% to 40% higher prices on most items,” Sorgi said. “The tariffs are going to affect our display customers the most,” explained Sorgi, adding that firework shows may be shorter.
“The unfortunate thing is, at the end of the day, the consumer ends up paying for these tariffs,” Sorgi said of the ongoing trade war. “We’re just taxing ourselves to celebrate our great nation.”
People watch a fireworks display during a celebration of the U.S. Army’s 250th anniversary on Flag Day, June 14, 2025, in Washington. (Tom Brenner For The Washington Post via Getty Images)
As for 2025 Fourth of July celebrations, Steve Houser, president of Red Rhino Fireworks, told FOX Business that retail sales of fireworks have been strong.
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“What I have seen this year, and what I’m seeing right now, is that sales on the retail side have been very strong,” explained Houser, the former president of the National Fireworks Association.
What’s more, Phantom Fireworks CEO Bruce Zoldan told FOX Business the “average sale is close to $400 this year” at the company’s brick-and-mortar stores. Those sales are up approximately 10%–15% from 2024.
FOX Business’ Aislinn Murphy contributed to this report.
