Santa Cruz, CA — The Halloween industry is facing a chilling season — not from ghosts, but from President Donald Trump’s steep tariffs on Chinese imports, which are squeezing small businesses and driving up costs for consumers.
Chris Zephro, co-founder of Trick or Treat Studios, says his company has paid over $800,000 in tariff costs this year alone. His business — which supplies Halloween masks, props, and horror merchandise to more than 10,000 retailers — had to lay off 15 employees for the first time in 15 years.
“This is Economics 101. Tariffs are paid by importers,” Zephro said. “We’re losing jobs, not creating them.”
The Tariff Toll on Halloween
Since April, U.S. tariffs on most Chinese goods jumped from 20% to 145%, later reduced to 30%, disrupting production and delaying shipments just ahead of the Halloween season. With 90% of Halloween products containing components made overseas, the impact has been widespread.
Retailers say customers should brace for higher prices: the National Retail Federation expects record spending of $114.45 per person, about $11 more than last year.
At Phantom Halloween in California, owner Ryan Goldman said costume prices will rise $5–10 on average, though he’s trying to absorb as much of the cost as possible.
“We don’t want prices to go up 100% across the board. That’s not fair,” Goldman said.
Small Businesses Feel the Squeeze
Many small manufacturers can’t afford to relocate production. The Halloween and Costume Association warns that smaller players lack the scale or infrastructure to shift operations domestically.
Zephro agrees: “If you want manufacturing to come back to the U.S., start by addressing why it left — high costs, regulations, and taxes.”
For some, certain products have become unsellable. Goldman said he skipped ordering large animatronic props this year, noting that one popular clown decoration that used to sell for $399 would now cost around $600.
Zephro also shelved production on collectible action figures, saying tariffs made them “impossible to sell at reasonable prices.”
Families Face Sticker Shock
Parents are feeling the pinch too. Reyna Hernandez, shopping for her son’s costume, said prices are “ridiculous.”
“We can’t even afford a simple hat for $30. A lot of people are not going to manage costumes this year.”
With 79% of shoppers expecting to pay more, even the holiday’s fun traditions are turning into financial headaches.
The Political Divide
The White House defends the tariffs as part of Trump’s “America First” policy. Spokesman Kush Desai said tariffs aim to level the playing field and drive domestic investment, adding that “real prosperity is good jobs, not cheap Chinese imports.”
But business owners like Zephro see it differently: “This policy is not restoring manufacturing — it’s punishing small U.S. businesses trying to survive.”
As Halloween approaches, the real fright isn’t from the masks or monsters — it’s from rising prices, shrinking inventories, and the fear that next year’s celebration could be even scarier for America’s retailers.
