Industry Leaders Warn Tariffs Threaten to Cancel Halloween 2025 Products
U.S. costume and toy companies are sounding the alarm that newly proposed tariffs on Chinese imports could wipe out Halloween and severely disrupt Christmas unless urgent action is taken. Read on for today’s full press release from the Halloween & Costume Association, as well as this week’s near identical warning from the CEO of beloved inflatables and animatronics company Gemmy.
From today’s press release: With production already underway and orders locked in, businesses are scrambling to find ways to get products into stores on time and at prices that families can afford.
But affordability is slipping fast. Costumes that used to retail for $19.99 will jump to $39.99. Even simple masks, once priced at $4.99, could now cost $9.99, or more. At double the price, many simply won’t buy.
“This is an existential moment for our industry,” said Robert Berman, Halloween & Costume Association Board Member and President of Rasta Imposta/Imposta Costumes, a leading U.S. costume manufacturer. “Halloween isn’t like other holidays. If products don’t land on time or become too expensive for families, Halloween simply doesn’t happen. There is no backup plan.”
The latest round of tariff hikes, which could increase rates up to 145% or even 170%, is hitting seasonal suppliers at the worst possible time. With millions of dollars already spent on raw materials and production, many companies are now facing sudden, unexpected costs that make their ranges unviable. Retailers are reacting by cancelling orders and cutting volumes—even on products specifically designed for their shelves.
“It’s brutal,” said Berman. “These are goods that are weeks from shipping — not months. And because Halloween is a one-night event, if you miss that window, there’s no way to recover.”
Toy companies are sounding the alarm too, warning that Christmas could be next. “You can’t move a supply chain overnight,” said one industry executive. We’re already seeing retailers freeze decisions on key holiday lines. If nothing changes, American families will face higher prices, fewer choices, and a lot of empty shelves.
The costume and toy sectors have been actively working to diversify production for years — but they warn that shifting away from China is a long-term project, not a quick fix.
“We’ve been trying to reduce reliance on China for a while now,” said Berman. “But these are complex supply chains built over decades. You can’t just flip a switch and move thousands of SKUs overnight. Setting up new factories, building trust, ensuring quality, finding capacity — that takes years, not months.”
Industry leaders are calling on the U.S. government to consider the seasonal nature of these categories before final decisions are made. While they understand the political backdrop, they say the unintended consequences could devastate businesses — especially small- and mid-sized ones — and leave consumers footing the bill.
“We’re not asking for handouts,” Berman added. “We’re asking for time, clarity, and a practical path forward. If these tariffs go through as planned, Halloween 2025 could be the one that never happened — and Christmas might not be far behind.”
Earlier this week, Gemmy put out its own separate press release also urging the U.S. President to reconsider tariffs that not only threaten Halloween and Christmas, but American jobs, in which Daniel G. Flaherty, CEO of a Texas-based holiday toy company behind iconic products like Big Mouth Billy Bass and Airblown Holiday Lights, said, “For more than four decades, we’ve been in the business of delivering joy. Creations like Big Mouth Billy Bass and our inflatables have become part of American holiday traditions. But today, those traditions — and the livelihoods behind them — are at serious risk.”
Gemmy employs more than 100 Americans, and Flaherty credits long-standing duty-free policies with helping small and medium-sized businesses like his keep shelves stocked and families smiling during even the toughest times.
Flaherty’s statement continues, “If these [tariffs] remain in place, shelves will go empty, prices will spike, and companies like mine — built on bringing magic to American homes — will struggle to survive. We’re not just fighting for business, we’re fighting for joy. These tariffs threaten Christmas for millions of families. Please help us keep the holidays bright for millions of families. Let’s make America smile again.”
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