Manufacturers and importers warn that escalating tariffs on Chinese goods could cripple the upcoming holiday season. With U.S. tariffs now at 145% on key imports, companies are facing stalled shipments, canceled orders, and soaring costs.
A Philadelphia-based costume and novelty retailer has $3 million worth of inventory trapped in Chinese factories as wholesale customers hesitate to place orders. Larger retailers are already scaling back, threatening the company’s profitability during its critical Halloween and holiday sales window.
The tariffs, intended to boost U.S. manufacturing, are squeezing businesses that depend on long-established overseas supply chains. Industry estimates indicate that nearly 90% of Christmas decorations sold in the U.S. are produced in China, leaving importers scrambling to salvage the season with few alternatives.
Although President Trump has hinted that tariffs could be reduced, no timeline has been set, and businesses fear a chaotic scramble to restock shelves. Even with a rollback, experts warn of supply chain bottlenecks that could delay products beyond peak shopping periods.
Source: Philadelphia Inquirer