Tariff Relief for Fireworks Imported from China

On May 12, the White House announced a significant reduction in tariffs on imports from China, reducing the total rate on fireworks from 150.3% to 35.3%. This change takes effect Wednesday, May 14, and will remain in place for 90 days. This temporary relief offers much-needed support to the fireworks industry by stabilizing costs and creating a narrow window to import additional inventory ahead of the July 4th holiday.

Understanding the Current Tariff Structure

The tariff rate consists of several components:

Tariff Rate	Description
5.3%	Longstanding baseline tariff on fireworks.
20%	Added earlier this year in response to the opioid crisis. Initially set at 10% on February 4, and increased to 20% on March 4.
125% 10%	Trade-related tariff targeting Chinese imports. This was reduced from 125% to 10% effective May 14.

Note: For the remainder of this article, we reference only the additional tariff components imposed this year, excluding the regular 5.3%.

How We Got Here

This has been a very dynamic situation as tariff rates evolved over the past three months. When the additional 10% tariff was first introduced in February, our plan was to pass it through as directly as possible on an item-by-item basis as inventory arrived. This was going to average about a 4% price increase from where we started the 2025 season. When the 10% tariff became 20%, we were still going to stick to that plan.

However, in early April, reciprocal tariffs were added, making it 54%, then 104%, then 145%.

We were at COBRA-CON that week, and the mood within the fireworks community was tense as news came in about increasing back-and-forth rates with China.

As a result, we had to make some fast, difficult decisions:

• Canceled or restructured remaining China shipments, incurring extra costs to cancel bookings, return containers to our warehouses, and unload them.
• Paused or delayed production meant for New Year’s and next July 4th because China warehouses became overfilled instead of clearing out as expected.
• Shifted our pricing strategy to average tariffs across all products, preventing massive price swings between items and avoiding further disruption to purchasing behavior and supply chains.

As a result, we have less inventory and higher costs than originally planned for this season. Further, customers that normally buy drop-ship containers had to cancel and rely on domestic inventory instead, putting added pressure on availability.

What’s Next

The impact of recent trade tensions will have a lasting impact.

Looking ahead, we are not sure where final tariff rates will land. If last week’s trade deal with the UK is any indication, rates with China aren’t going back to zero, even in a best-case scenario. The current tariff relief is temporary, and unless extended or followed by a new agreement, rates will climb back to 54% after the 90-day window ends.

We will almost certainly see higher ocean shipping rates soon as well. Most fireworks importers, along with many others, stopped booking new shipments from China in April, in addition to canceling shipments that had already been booked. Huge numbers of sailings were canceled as a result. With this temporary tariff reduction in place, we expect a rush of shipping demand to result in vessel space shortages, increased shipping rates, and possibly fireworks inventory shortages for New Year’s.

It’s worth noting that ocean shipping lines only offer limited space per vessel for fireworks, which they often cancel when they have excessive demand for general cargo.

Pricing Impact

Navigating these challenges is tough. We’re doing everything possible to shield our customers from the worst impacts while preparing for increased costs in the months ahead. This 4th of July season is our only real chance to prepare financially.

With all of this in mind, we have taken a phased approach, gradually averaging tariffs into our pricing while keeping a close eye on the news.

• We implemented wholesale price increases on April 12 and May 1, with a combined impact of about 17% over the start of the season.
• We implemented retail price increases on May 1, but this was more limited because we reduced markup to help preserve the best possible pricing.

Thanks to the current tariff rollback, prices will remain stable through July 4.

What This Means for You

For Wholesale Customers

Inventory is limited this 4th of July, and if you haven’t placed your wholesale fireworks order yet, do it now. The combination of canceled imports and peak-season demand is driving high competition for domestic inventory.

For Retail Customers

With the 4th of July falling on a Friday, this will be a huge celebration year at our store in Orange Park, Florida! Shop early for the best selection, the best pricing, and the best shopping experience of the season.