Tariffs bite US fireworks celebrations

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By Ma Jingjing and Li Hang (Global Times) 08:49, April 30, 2025

Every year, the period from April to May is a peak season for US fireworks importers to get their products from China for the Independence Day fireworks celebrations on July 4, but due to Washington's steep tariffs on Chinese products including fireworks, the US' 249th birthday's fireworks celebrations may be significantly scaled back, according to US media reports.

Some fireworks companies in Central China's Hunan Province and East China's Jiangxi Province - two large fireworks production bases in China - told the Global Times they are confident in withstanding pressure from the US' "tariff stick" by enhancing their international competitiveness through continuous technological innovation and superior product quality.

"Amid concerns over the US government's back-and-forth tariffs, some US fireworks dealers have been cautious in receiving goods and thus we have halted the shipment of fireworks to the US," said a manager of a large fireworks manufacturer in Liuyang, Hunan Province, one of the world's largest production hubs for firecrackers and fireworks. The manager declined to be named due to the sensitivity of her business.

The manager told the Global Times that the company is still manufacturing fireworks for several large US clients and has hired warehouses to store the products, but already stopped receiving orders from smaller US clients.

"According to our industry practice, fireworks exported to the US are priced on a Free On Board (FOB) basis, which means no matter how high the tariff is, buyers are responsible for the duties and freight," the manager said.

Despite short-term disruptions, the manager said the US tariffs have only limited impact on Chinese fireworks industry in the long term since the US produces almost no fireworks domestically.

From February 2024 to January 2025, the US imported $508 million worth of fireworks, with $481 million, about 95 percent, of those fireworks originating from China, US local media outlet KSL NewsRadio reported.

"The tariffs are worse than COVID," said Julie Heckman, executive director of the American Pyrotechnics Association (APA), which represents companies in every link of the fireworks supply chain," The New York Post reported on April 15.

"[Fireworks businesses] are really beginning to get back on their feet and thrive, and now being hit with a tariff has got everybody in a tailspin. How do you absorb 145%? Especially when this is the peak time for all of our products to come in from China," she said, noting that a lot of displays in the US are going to be smaller, especially for independent shows.

Earlier this month, the APA sent a letter to US President Donald Trump requesting the removal of tariffs on fireworks to support the struggling industry, according to the report.

Amid pressure from the US' "tariff stick," many Chinese fireworks manufacturers are actively adjusting their strategies to reduce their dependence on a single market through diversification and technological innovations, according to an industry insider.

Shangli county in Jiangxi Province is another major production hub for fireworks and crackers in China. He Xiangui, director of the Export Committee of Shangli General Chamber of Commerce of Fireworks and Firecrackers, told the Global Times that the county can withstand US tariff pressure by adopting a "dual circulation" strategy that combines deep cultivation of the domestic market and diversified export expansion with the Regional Comprehensive Economic Partnership policies and technological advantages.

"The share of Shangli's fireworks exports to non-US markets rose to 65 percent in 2024," He said, noting that trade barriers have prompted fireworks manufacturers in Shangli to embark on a path of high-quality development.

He said that fireworks manufacturers in Shangli are striving to improve their international competitiveness through automated manufacturing and customized products. "For example, Jiangxi Shengyu Fireworks invests 20 million yuan ($2.75 million) in fully-automated production lines which improve efficiency while reducing labor costs. Moreover, Jiangxi Jinping Fireworks has invested 4 million yuan annually in research and development of innovative and environmentally friendly products to enhance the value-added," He said.

"Currently, fireworks and crackers produced in Shangli are exported to 64 countries up from previously 50, and I believe that with our collective efforts, the industry will achieve higher-quality and more stable development," He said.

(Web editor: Zhong Wenxing, Liang Jun)