The Hidden Cost of Tariffs: Halloween Sales Plummet

Written by Parriva — October 20, 2025
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Chris Zephro’s warehouse full of latex masks, “Saw” movie props, and zombie apocalypse games is a testament to his love of horror.

“Horror is not necessarily Halloween. It’s really a lifestyle,” Zephro said.

But the fake blood inside his Santa Cruz, California, warehouse pales in comparison to the real-life cash bleed from his business ever since the Trump administration launched a trade war with China last spring.

Zephro’s company, Trick or Trick Studios, produces and imports goods that are sold to more than 10,000 retailers around the world, 65% in the United States. He has paid upwards of $800,000 in tariff costs so far this year. The Halloween and Costume Association roughly said 90% of Halloween products contain at least one component made overseas, most often in China.

That cost has forced Zephro to lay off 15 employees for the first time since he co-founded his company 15 years ago, which he calls “one of the worst days of my life.”

“I mean, these are friends of mine. I know their families and I’m hoping to bring them back,” said Zephro, who is also treasurer of the Halloween and Costume Association. “Unfortunately, at the end of the day the business survives or it doesn’t. And I know of a number of companies in our industry that have had to close their doors.”President Donald Trump increased US tariffs on most Chinese goods from about 20% to 145% in April, before reducing the rate to 30% in May. Many production orders were halted in April since importers decided it would be too costly to bring them into the US for the Halloween season.

As a result, this year’s Halloween inventory will be tighter, and things will cost more. Halloween shoppers can expect to spend a record $114.45 per person this season, according to the National Retail Federation (NRF), $11 more than last year.

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