【By Observer Net, Qi Qian】On July 4 next year, the United States will celebrate its 250th anniversary. President Trump has already announced that he plans to hold a large-scale national celebration lasting an entire year to commemorate the U.S. 250th birthday.
Every Independence Day, fireworks shows are highly anticipated celebrations for Americans. However, according to a report by the Wall Street Journal on July 3, the U.S. fireworks industry warns that due to the significant increase in tariffs on Chinese goods previously, production and transportation have been severely delayed, and there may be no fireworks available for next year's Independence Day. Data shows that as much as 99% of the fireworks in the U.S. rely on imports from China.
The report said that the U.S. Fireworks Association is planning to go to Washington D.C., trying to lobby the government to maintain low tariffs on imported fireworks.
Chinese Adam Dai considers "understanding what fireworks Americans want to see on Independence Day" as his career. In 2013, Adam founded his own fireworks company in Liuyang City, Hunan Province, mainly producing and exporting American-themed fireworks. It is reported that 90% of the company's fireworks are sold to the U.S. market, exporting about 500 containers of fireworks to the U.S. every year.
However, the Sino-U.S. trade war initiated by President Trump caught him off guard.
In April this year, the U.S. imposed tariffs on Chinese goods exceeding 140%, causing chaos in the fireworks industry. Stacy Schnett Black, president of the U.S. Fireworks Association, stated that during the chaos, some shipments failed to arrive on time, leading to price increases for some products, and some public performance organizers had to increase their budgets. After the tariffs were reduced below 40%, most goods could pass through customs.
But the report pointed out that the real challenge lies in the 250th anniversary celebration of the U.S. Independence Day in 2026. At that time, the demand for fireworks across the country may surge. However, fireworks manufacturers need a long lead time for inventory, but many U.S. businesses are worried that tariffs may rise again, making the supply to the U.S. unprofitable. Therefore, the two major U.S. fireworks industry associations will visit Washington D.C. this month to lobby the government to maintain low tariffs.
Producers like Adam face a choice: should they fully prepare for the U.S. celebration or scale back and wait and see?
"The two countries should resolve issues through negotiation and peace; there are no winners in a trade war," Adam said, "the U.S. needs China, and China needs the U.S."
In 2018, Trump and his wife watched the U.S. Independence Day fireworks. White House website
Local time on July 1, Trump posted on a social media platform that he would hold a celebration in Iowa, which is one of his favorite places in the world, calling it "a very special event to honor our great nation and the brave heroes who fought for our freedom."
According to U.S. media reports, on local time July 3, Trump delivered a speech at the celebration held in Iowa, marking the beginning of the nationwide celebrations lasting an entire year in preparation for the U.S. 250th birthday.
Data from the U.S. Fireworks Association indicates that 99% of consumer fireworks in the U.S. depend on imports from China, and 75% of performance fireworks also come from China. In the 1980s, due to rising labor costs, stricter safety regulations, and competition from Chinese imported products, most U.S. fireworks manufacturers exited the market.
Liuyang City accounts for about 60% of China's fireworks and firecrackers exports. There are about 400 factories in the suburbs, where the sound of test firing fireworks can always be heard during the day. Workers manually assemble components, connecting each part with tape.
When tariffs surged in April this year, most U.S. customers requested to stop shipping. Some even asked for price reductions, but Adam refused, stating that the company's profit margin ranges between 5% and 13%, leaving little room for price cuts. After a breakthrough in Sino-U.S. negotiations in May, some customers still chose to delay pickup. Currently, the company has accumulated about 30 containers of inventory, with approximately $1.2 million in unpaid freight.
For fireworks professionals, not only might higher tariffs be imposed next year, but more serious challenges lie in the Trump administration's call for manufacturing to return.
The New York Times mentioned that this $2 billion industry heavily relies on China, partly because although fireworks retail prices are not cheap and demand is high, their profits are quite slim. This means that even though the current U.S. tariffs on Chinese goods have dropped to 30%, importers and retailers in the U.S. still find it difficult to absorb. Because if prices rise further, consumers may lose interest in purchasing.
Currently, the U.S. Fireworks Association is lobbying the government, hoping that Trump can include fireworks in the list of tariff exemptions for Chinese goods, similar to 2019. The lobbying team also tried to move Trump with patriotism, claiming that fireworks lit during celebrations like Independence Day can inspire Americans' patriotic emotions, so they should not be taxed as symbols of patriotism.
However, the White House spokesperson insisted that rebuilding U.S. manufacturing, rather than importing foreign "cheap" fireworks, is the embodiment of patriotism.
In response, the two major U.S. fireworks associations wrote to U.S. Commerce Secretary Howard Lutnick, stating that the U.S. lacks key raw materials, high labor costs, and strict regulations, making domestic production almost impossible. The letter stated: "Tariffs will only increase the costs for U.S. companies, local governments, and consumers, rather than bring back jobs."
Adam said that given confidence in U.S. buyers, he still remains optimistic about the opportunities in 2026. It is revealed that in August, he will travel to the U.S. to negotiate and is planning to launch 15 new American-themed fireworks, including 250-shot commemorative shells and a special "Trump Golden Dome" inspired by missile defense systems. He has not given up on his goal of having his fireworks available in all 50 states, currently covering 37 states.
Data shows that 99% of U.S. consumer fireworks rely on imports from China. Wall Street Journal map
As early as May, the U.S. fireworks industry issued a warning that it may not be able to stock up in time for the Independence Day festival.
In mid-May, breakthroughs in Sino-U.S. trade negotiations led U.S. companies to "bomb" their Chinese suppliers' phones, urgently requesting fast shipments. However, media reports pointed out that the sudden surge in freight demand would overload factories and container ships, causing supply chain problems.
Juli Heckman, executive director of the U.S. Fireworks Association, said at the time that due to the inability to bear higher tariffs, U.S. fireworks importers had suspended many shipments from China in April. She said that while tariff costs remain high, some companies have started resuming shipments. However, for some companies, it may be too late to receive goods before the U.S. Independence Day holiday, leading to shortages of certain products.
NBC reported on May 5 that the shortage of fireworks could affect the U.S. Independence Day celebrations next year. The fireworks industry originally expected a surge in demand, but due to the uncertainty of tariffs, many fireworks companies had suspended production in China in April.
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