Tariffs Cast a Dark Shadow Over Halloween Businesses

Inside Chris Zephro’s warehouse, latex masks, “Saw” props, and zombie board games line the shelves, reflecting his lifelong passion for horror. But this Halloween season, the real fright isn’t gory props — it’s the financial bleeding caused by U.S. tariffs on Chinese imports.

Zephro’s company, Trick or Treat Studios, supplies more than 10,000 retailers worldwide, with 65% of its sales in the U.S. Since the Trump administration escalated tariffs last spring, he’s been hit with over $800,000 in extra costs. The burden forced him to lay off 15 employees — something he says was “one of the worst days” of his career.

And he’s not alone. The Halloween and Costume Association reports that nearly 90% of Halloween products contain parts made overseas, mostly in China.

🎭 Rising Costs for Shoppers

The ripple effect is already hitting families. Shoppers can expect to spend a record $114 per person this Halloween, up $11 from last year. Costume shop owners like Ryan Goldman of Phantom Halloween in California are struggling to keep prices reasonable.

“Costumes will probably be $5–10 more this year,” Goldman said. “We’re trying to hold child costume prices steady, but adult costumes are harder to absorb.”

Parents like Reyna Hernandez are already feeling the pinch. Her son wants a “Walking Dead” costume, but the hat alone set her back $30. “It’s just ridiculous. A lot of people won’t be able to afford a full costume this year,” she said.

🏭 Why Small Businesses Are Hurting Most

While large companies may find ways to soften the blow, smaller manufacturers face steeper challenges. Moving production to the U.S. is nearly impossible, Zephro explains, because of higher taxes, regulations, and lack of infrastructure.

“If you want manufacturing back in America, you need to incentivize it — not punish businesses relying on factories that don’t exist here anymore,” he said.

Some companies are cutting back inventory altogether. Goldman skipped ordering big-ticket animatronics like his 6.5-foot “Cagey the Clown” prop, which would have jumped from $399 to nearly $600 under new tariffs.

🎃 The Real Horror Story

Halloween is supposed to be about scares for fun, but this year, businesses and families are facing real economic fear. For many, the season has become a balancing act — keeping traditions alive without breaking the bank.

“Tariffs don’t hit politicians. They hit families and small businesses like ours,” Zephro said. “At the end of the day, it’s survival.”