Fireworks and Trade Wars: The Uncertain Future of July Fourth Celebrations

As fireworks light up the sky this Independence Day, a troubling reality simmers beneath the sparkle: over 97% of the fireworks used in U.S. celebrations come from China. In light of escalating trade tensions, this reliance poses serious questions for future Fourth of July festivities and the broader U.S. fireworks industry.

Supply Chain Disrupted Amid Tariffs

In 2023, the United States imported more than 120,000 tons of fireworks, primarily sourced from Liuyang, China, the world’s fireworks manufacturing powerhouse. However, manufacturers like Wendy Tang, owner of Pyroshine Fireworks, reported significant challenges due to President Donald Trump’s hefty tariffs on Chinese goods, which swelled to 30% from a previous 5% after a brief trade truce that ended in mid-August. This dramatic increase has left American distributors wary about future supply, as they grapple with the financial implications of rising costs.

“We’re looking at $20,000 or more increased cost just to get the container out of port,” Matthew Lavigne, owner of Green Mountain Fireworks, shared, emphasizing how these tariffs may force smaller businesses to scale back on elaborate displays or even limit their offerings. While most warehouses were stocked in time for this year’s celebrations, the uncertainty lingers, especially with a “grand celebration” planned for the 250th anniversary of American independence next year.

Despite initial fears, this year’s fireworks shipments were completed on time. However, Pyroshine Fireworks, along with other manufacturers, experienced a surge in orders as American clients prioritized their supply for Independence Day, showing the determination of U.S. consumers. Yet, for long-term operations, the industry remains captive to the whims of trade negotiations between the two nations.

Impacts on the Industry and Workers

The repercussions of these trade policies extend far beyond pricing and supplies. The $2 billion U.S. fireworks industry, which largely consists of small businesses, supports numerous jobs depending on factories like those in Liuyang. Yet, there’s a palpable sense of anxiety echoed by many industry insiders. Melissa Cai, the U.S. sales manager for Pyroshine Fireworks, noted that “very few orders” have been placed recently as distributors adopt a wait-and-see approach.

The global nature of fireworks manufacturing means the current landscape is precarious. Nicolás Souza Linares, international business manager at a major U.S. fireworks supplier, claimed, “There’s no country on the planet that can have this infrastructure and do mass production like China.” Compounded by high labor costs and raw material shortages in the U.S., achieving self-sufficiency in fireworks production seems unlikely.

Furthermore, safety remains a pressing concern. The recent tragic explosion at a Hunan fireworks factory, which resulted in nine fatalities and numerous injuries, underlined the risks faced by workers in the production facilities. Manufacturers implement strict safety protocols, including color-coded uniforms to denote danger levels, ensuring that hazardous tasks are conducted with utmost caution.

As the U.S. grapples with its dependence on Chinese fireworks production, the looming question remains: What will happen if trade agreements fail? Without resolution, the fireworks market could face substantial disruptions, and the festive spirit of future July Fourth celebrations may dim.

The urgency for action is clear. The American Pyrotechnics Association and the National Fireworks Association have voiced serious concerns about the long-term viability of the industry amid the ongoing tariffs, arguing that these measures will only serve to inflate costs without fostering domestic production.

With both sides of the Pacific awaiting developments in trade discussions, the fireworks industry holds its breath. The spark of independence celebrations faces a potential snuffing out if the political landscape doesn’t shift in favor of stability and collaboration. The fate of future fireworks displays, a cherished American tradition, now hangs in a delicate balance.