Ghouls, goblins, witches and clowns: Halloween has something scary for everyone. For Fort Collins residents, the scariest thing this year might just be how much your costume and decorations cost. The culprit? Tariffs.
With Halloween just around the corner, the price of this year’s spooky season is becoming increasingly apparent. According to the National Retail Federation, the average spending per person for Halloween this year is a record $114.45 — about an $11 increase in average spending per person from last year.
But the rise in spending has less to do with purchasing power and more to do with decisions made by companies in response to President Donald Trump’s tariffs. Tariffs are taxes on imported goods that are paid to the government by companies bringing in the foreign product. Trump enacted many of his tariff policies April 2 of this year, with some being the highest tariffs America has seen since 1934.
China, one of the largest U.S. importers, saw an increase in tariffs on most goods from about 20% to threatened 145% in April, then down to 30% in May. This includes a 10% reciprocal tariff and a 20% “Fentanyl tariff,” although rates are expected to increase again in November.
Considering roughly 90% of Halloween products have at least one component made overseas, importers of Chinese goods had to make crucial decisions. Many production orders for Halloween-related goods were paused starting in April, as soon as importers decided they couldn’t afford the extra cost of bringing their goods into the U.S.. This means there is less to go around this Halloween, causing the classic cat ears and face paint to creep up in price.
Colorado State University Assistant Professor of political economy Marwil Davila-Fernandez said producers within the U.S. have at least three options: keep buying Chinese imports, find alternative importers for their products or try to produce in the U.S..
“The moment the government makes that decision in April, everybody has to adapt as quickly as possible,” Davila-Fernandez said.
All three of these options will most likely cost consumers more as companies adjust to what Davila-Fernandez called a “supply shock.” Examples of things that may go up in price this season are Halloween inflatables, carving kits, face makeup and, most pertinently, costumes.
The average consumer is getting hit hard, especially those who live in towns like Fort Collins. After the closure of Party City, Spirit Halloween is the only well-known costume shop locals can rely on for quick and cheap holiday supplies.
Spirit Halloween charges anywhere from $30 to over $100 for a costume, even for children. Consumers can turn to thrift stores or daily wear retailers, but DIY costumes may not be as easy as they sound. Elise Kulovany, a costume shop manager for CSU’s School of Music, Theatre and Dance, explained how vital access to premade costume supplies are for people in the current age.
“Handmade things tend to be more expensive because of the labor hours involved and the expense for getting the fabric,” Kulovany said.
For those who want to get hands-on and make a costume, Kulovany said it may be difficult to acquire the skills necessary. This is apparent in the groups of students entering the costume department without any experience in fabric modification.
“Some students haven’t ever even seen a needle before,” Kulovany said. “The base knowledge is no longer a base knowledge.”
The impact of tariffs on consumer goods can be disastrous in smaller urban areas like Fort Collins, which lacks competition for places like Spirit Halloween. American entrepreneur Chris Zephro, owner of Trick or Treat Studios in Santa Cruz, California, said he’s seen similar roadblocks caused by tariffs.
According to CNN, his company produces and imports goods sold to over 10,000 retailers around the world, with 65% in the United States. He’s had to spend up to $800,000 in tariff costs this year, forcing him to lay off 15 employees this year for the first time since he co-founded his company in 2010.
“Unfortunately, at the end of the day, the business survives or it doesn’t,” Zephro said in an interview with CNN. “And I know of a number of companies in our industry that have had to close their doors.”
According to the Trump administration, these effects are worthy trade-offs for incentivizing more production in the U.S., creating more jobs for manufacturers and fixing unfair trade relationships.
Reach Katya Arzubi and Maiya Kreamer at news@collegian.com or on social media @RMCollegian.
