[Text/Observer Network Wang Yi] Every Independence Day, the fireworks show is a much anticipated celebration activity for Americans, but next year, there may be "total darkness" in the sky at the United States' 250th anniversary celebration.

Ninety percent of the fireworks in the U.S. come from China. Now, due to the extremely high tariffs imposed by President Trump on all Chinese imports, American fireworks companies that cannot afford the tariffs have notified their Chinese suppliers to suspend shipments. The Washington Post reported on the 27th that a boss of an American fireworks company said that this will not only cause serious shortages and disrupt production, but also make it impossible to hold the fireworks display for the U.S. 250th anniversary celebration that Trump wants to celebrate grandly.

Stacy Blake, co-owner of Schneitter Fireworks, should have placed a large order with a Chinese fireworks factory for next year's fireworks, but due to the tariffs, she did not do so.

"We face a huge problem next year," said Blake, who is also the president of the National Fireworks Association. Chinese fireworks factories are about to enter their annual summer shutdown period, and if Trump does not immediately cancel the tariffs, they will miss the opportunity to place orders for 2026. It is unclear where the fireworks products for the U.S. 250th anniversary celebration next year will come from.

Data shows that from February 2024 to January 2025, the U.S. imported $508 million worth of fireworks, 95% of which originated from China. The Washington Post pointed out that almost all personal-use fireworks purchased by Americans are made in China, and 3/4 of the fireworks used in community-level and larger-scale celebrations are produced in China.

The New York Post reported on the 15th that every Independence Day, 17,000 celebrations are held across the country, and the fireworks show is one of the most attractive activities. Ninety-nine percent of the world's fireworks are produced in China, and Trump's trade war against China has caused panic throughout the American fireworks industry.

In 2018, Trump watched the Independence Day fireworks with his wife. White House

Julie Heckman, CEO of the American Pyrotechnics Association (APA), said that this is the peak season for fireworks companies to import from China, but now everyone is in trouble due to the tariffs. "All our products have been hit at the worst time."

She expects fireworks companies not to absorb costs or pass on the price increases to consumers, but to respond through some industry consolidation and acquisitions.

As for Trump's promotion of bringing manufacturing back to the U.S., Heckman believes this will never happen in the fireworks manufacturing industry. She said that the U.S. does not produce raw materials, gunpowder, and all necessary chemicals. Even if someone wants to start production, all chemicals must rely on imports.

Heckman introduced that in the 1940s to 1960s, Italian fireworks manufacturers immigrated to the U.S. and settled in Newcastle, Pennsylvania, gradually developing into America's fireworks capital. Later, with the U.S. strengthening regulation of the industry, domestic fireworks companies collapsed en masse, and the U.S. fireworks industry rapidly declined.

Without domestic supply, American fireworks companies had to seek imports. Chinese fireworks, with their advantages of being beautiful and affordable, safe, etc., defeated fireworks manufactured in Italy, Spain, and other countries, almost completely monopolizing the U.S. market.

When Trump first initiated the trade war against China in 2019, he realized Americans' reliance on Chinese fireworks and granted an exemption from the tariff on fireworks imports. But this time, he has not given an exemption yet.

The American Pyrotechnics Association wrote to Trump in early April, requesting him to cancel the tariffs on fireworks. The letter stated, "In 2019, your administration wisely recognized the uniqueness of the fireworks industry and exempted it from tariffs. We urge you to take the same wise action now to protect American jobs, small businesses, and patriotic celebrations that define our great nation and bring us together."

Trump has already signaled a "cooling down" of tariffs last week. On the 23rd, he said in the Oval Office of the White House that he would not take "hard measures" against China during the tariff negotiations, and expressed "optimism" that an agreement could be reached "quite quickly" to "significantly reduce" the 145% tariff on Chinese imports.

Nevertheless, The Washington Post believes that Trump's tone change came too late: the U.S. economy has already been damaged. Constance Hunter, chief economist at the Economist Intelligence Unit (EIU), said, "You can't put the toothpaste back in the tube; once it's out, it's out."

The report said that just as the impact of tariffs on the fireworks industry will not become apparent until next year's U.S. celebration of the 250th anniversary, the impact of tariffs on the overall U.S. economy will take some time to become widely apparent, but more and more evidence suggests that tariffs have already suppressed economic activity and will soon push up prices.

Data from the Port of Los Angeles, a major port in the U.S., shows that cargo ships transporting goods from Asia have canceled 20 port calls. Ryan Petersen, founder and CEO of shipping company FLexport, said that in the three weeks since the tariffs took effect, the volume of maritime container orders from China to the U.S. has fallen by more than 60%.

Torsten Slok, chief economist at Apollo Global Management, said that the consequence of this phenomenon will be "shelves empty in American stores a few weeks later, and both consumers and businesses using Chinese products as intermediates will face material shortages similar to those during the pandemic."

Manufacturers in the U.S. that rely on Chinese imports to produce in the U.S. have already felt the pressure. A survey of manufacturing in Philadelphia by the Federal Reserve Bank showed that U.S. manufacturing experienced one of the largest monthly declines on record, second only to the decline at the beginning of the pandemic in 2020 and the economic recession in 2008. Other economists also warned that business investment is also declining sharply due to the uncertainty brought by tariffs.

Bill Adams, chief economist at Comerica Bank, warned in a report on the 25th that "the U.S. economy is heading in a dangerous direction. The farther the economy moves along this path, the higher the risk of a recession becomes."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7498258014256824842/

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