WASHINGTON, D.C. – While economists say that Independence Day celebrations are only being minimally impacted by President Donald Trump ongoing trade war with China, that perception is not shared by many average Americans.
Nearly half (48 percent) of Americans say that tariffs are affecting their plans to celebrate the 4th of July, according to a recent survey by the personal finance website WalletHub.
WalletHub analysts say that concern is primarily motivated by rising costs for fireworks, nearly all of which – about 96 percent — are imported from China.
In 2024, Americans spent an estimated $2.7 billion on fireworks. That figure includes both consumer fireworks purchased for personal use and those used in professional displays.
Under current trade policies established by the Trump administration, the United States imposes a 30 percent tariff on fireworks from China.
“There are some retail fireworks dealers who have reported difficulties sticking fireworks because many of them come from China,” said industry watcher Jeffery Elsworth, an associate professor at Michigan State University.
Given the timing of those recently imposed tariffs, however, economists say they are expected to have only a minor impact on Independence Day celebrations this year.
But the WalletHub survey found that the perceptions of average Americans don’t mirror that reality.
WalletHub researchers report that 38 percent of Americans don’t feel financially independent this 4th of July; 53 percent plan to spend less on the holiday this year; and 79 percent of those surveyed believe that American independence is threatened by the rising federal debt.
“Fiscal uncertainty results in people being more cautious about how they spend on non-essential activities,” explains Christian E. Hardigree, the regional chancellor at the University of South Florida (St. Petersburg).
“Lavish vacation destinations, expensive fireworks displays and elaborate parties are giving way to simpler, more cost-conscious alternatives that still capture the spirit of the holiday without straining the budget,” he adds.
Within the U.S. fireworks industry, many retailers anticipated the Trump tariffs and ordered huge stocks of Chinese pyrotechnics prior to the beginning of the trade war. Others acknowledge that they have to pass on their increased costs to consumers.
But spokesmen for the American Pyrotechnics Association caution that that significantly increased tariffs on Chinese fireworks could cripple the industry and potentially jeopardize future celebrations, including the nation’s 250th birthday in 2026.