As Halloween approaches, American consumers are facing rising prices for costumes, masks, and candy due to tariffs imposed on imported goods, particularly from China. This situation is significantly impacting local businesses, which are now passing these increased costs onto consumers just as demand surges for the spooky season.
Small Businesses Feel the Squeeze
Lorenzo Caltagirone, owner of Total Party, highlights the struggles faced by small retailers this year. “Most of the costumes and accessories all come from China, about 95%,” he states. With the majority of Halloween masks and costumes manufactured overseas, businesses like his rely heavily on imports to meet seasonal demands.
Caltagirone’s company experiences a considerable influx of sales in October, with approximately 50% of his annual revenue generated during this month and 80% of that occurring in the ten days leading up to Halloween. However, to get his inventory to the shelves, he has incurred substantial costs, having to pay importers around $20,000 to cover increased fees. As a result, he has had to raise prices for his customers, with children’s costumes increasing from $29.95 last year to around $34.95 this year. For more exclusive adult costumes, price hikes could reach $20 to $30 more than previous years.
Industry-Wide Concerns and Future Outlook
The price increases extend beyond Caltagirone’s business, affecting the entire industry. The Halloween and Costume Association (HCA), a recognized trade group, has reached out to the Trump administration for relief from tariffs. The HCA reports that establishing reliable domestic supply chains in the U.S. to replace Chinese production could take years. Moreover, the association has raised alarms that these tariffs could severely impact small and mid-sized specialty businesses that form the backbone of the Halloween market.
Despite the challenges, Caltagirone remains cautiously optimistic about the upcoming Halloween season. He hopes that the increased prices will not deter trick-or-treaters and that his business can navigate through these difficulties. “I’m still confident that we will do… We’ll have a successful Halloween, but it’s been a real challenge,” he reflects.
As Halloween spending is projected to reach billions, the combination of tariffs and rising prices poses a critical test for retailers and consumers alike. The outcome will not only shape this year’s festivities but may also have lasting implications for the future of the industry.
