What's happened
Chicago Costume is ordering 40% fewer costumes this year due to US tariffs on Chinese imports, impacting Halloween sales. The business is repurposing old inventory and shifting production to Mexico amid market pressures and increased costs, with fewer promotions planned for 2025.
What's behind the headline?
The tariffs imposed on Chinese imports have significantly reshaped the Halloween costume market. Chicago Costume's decision to order 40% fewer costumes reflects a broader industry trend of adjusting supply chains to avoid tariff costs. This shift to Mexico indicates a strategic move to reduce reliance on Chinese manufacturing, which will likely lead to higher production costs but more stable supply chains. The reduction in new inventory and fewer promotions suggest that retailers are bracing for a challenging season, with consumers potentially spending less due to economic pressures. The larger retail environment, with chains flooding the market with cheap costumes, will intensify competition and could further squeeze smaller or more expensive suppliers. Overall, these developments forecast a more cautious Halloween retail landscape in 2025, with supply chain diversification becoming a key focus for costume retailers.
What the papers say
The articles from The Independent and AP News highlight how tariffs have increased costs for costume importers like Chicago Costume, leading to reduced orders and a shift in manufacturing to Mexico. The Independent notes that nearly 90% of costumes are made in China, and tariffs have caused storewide price increases, impacting consumer spending. AP News emphasizes that the company initially saw tariffs as an opportunity to promote environmentally friendly practices but has since faced market realities, including increased costs and competition from large retail chains flooding the market with cheap costumes. Business Insider UK adds that some suppliers had products ready without extra charges, but overall, the tariffs have caused a significant re-evaluation of supply chains and inventory management. The coverage collectively underscores how tariffs are reshaping the costume industry, forcing retailers to adapt quickly or face declining sales.
How we got here
The story stems from the impact of President Donald Trump's tariffs on Chinese-made products, which increased costs for costume importers like Chicago Costume. The company responded by reducing new orders, repackaging unsold inventory, and shifting some manufacturing to Mexico. These measures aim to mitigate the effects of tariffs and supply chain disruptions, which have affected the broader costume industry and retail sector during 2025.
Go deeper
Common question
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Why Are Halloween Costumes More Expensive This Year?
Many shoppers are noticing higher prices on Halloween costumes this year. The main reason? US tariffs on Chinese imports have increased costs for costume companies, leading to higher retail prices. This has sparked questions about how these tariffs are affecting the Halloween industry, whether retailers are finding new ways to source costumes, and if this will impact Halloween sales overall. Below, we explore the key factors behind these changes and what consumers can expect this season.
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Will Tariffs Affect Halloween Costumes This Year?
With recent tariffs on Chinese imports, many are wondering how this will impact Halloween costumes and shopping this year. From rising costs to fewer options, tariffs are changing the way retailers and consumers approach the spooky season. Below, we answer common questions about how tariffs are shaping Halloween sales and costume choices in 2025.
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Why Are Halloween Costumes Getting More Expensive?
Many shoppers have noticed that Halloween costumes are costing more this year. The rise in prices is linked to various factors, including tariffs and supply chain disruptions. If you're wondering why costumes are more costly and what you can do about it, you're not alone. Below, we explore the main reasons behind the price hike and answer common questions about Halloween costume costs today.
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