As the Halloween season approaches, Americans are preparing to spend billions on costumes, masks, and candy. However, rising prices due to tariffs on imported goods, particularly from China, are impacting consumers and local businesses alike. The duties imposed during the Trump administration have created a financial strain that is becoming evident as October 31 draws near.
Impact on Small Businesses
For small business owners like Lorenzo Caltagirone, who operates Total Party, the situation is challenging. He estimates that approximately 95% of the costumes and accessories sold in his store are imported from China. “Most of the Halloween masks and costumes are manufactured overseas,” Caltagirone explains, noting that only products such as makeup are typically made in the United States.
Caltagirone’s business heavily relies on the Halloween rush, with 50% of his annual sales occurring in October and 80% of those sales happening in the final ten days leading up to Halloween. This year, he has encountered substantial additional costs related to tariffs. To bring his inventory from overseas to his store, he has paid importers around $20,000 in fees. As a result, he has had to raise prices for consumers. A child’s costume that cost $29.95 last year is now priced at approximately $34.95, and high-end adult costumes may see increases of $20 to $30.
Industry-Wide Concerns
The effects of these tariffs extend beyond individual businesses. The Halloween and Costume Association (HCA), a recognized trade organization, has formally appealed to the Trump administration for reductions or assistance regarding the tariffs. According to the HCA, it could take years for the industry to establish reliable domestic supply chains capable of replacing the current reliance on Chinese production. The organization has expressed concern that these tariffs could significantly harm small and mid-sized specialty businesses, which are often the backbone of the Halloween retail sector.
Despite the increasing costs and the uncertainty in the market, Caltagirone maintains a cautious optimism about the upcoming holiday. He hopes that the price hikes will not deter trick-or-treaters from participating in the festivities. “I’m still confident that we will have a successful Halloween,” he remarks, though he acknowledges the challenges posed by the current economic climate.
As Halloween approaches, the interplay between international trade policies and local economies continues to shape the experiences of both businesses and consumers. The ongoing tariff situation remains a crucial factor in determining how much Americans will pay for their favorite holiday traditions.
