In the midst of their busiest time of the year, fireworks retailers are already looking to next year’s Fourth of July, and worrying it could be a dud.

President Donald Trump has threatened to place large tariffs on an additional $300 billion of Chinese imports, including 25% tariffs on fireworks, if trade talks with the country don’t reach a satisfactory conclusion.

That would have a huge hit on the U.S. industry, which generated $360 million in revenues on the display side in 2018 and $945 million in consumer revenue that year and relies almost exclusively on China for its products, according to the American Pyrotechnic Association.

It could also cause community fireworks displays to fizzle, as some municipalities may no longer be able to afford them, the APA stated.

Fireworks were invented in China and the country still manufactures 97.75% of all the consumer fireworks and 86.78% of all the display fireworks coming into the U.S. each year, according to William Weimer, a vice president with Youngstown, Ohio-based Phantom Fireworks.

Last year, more than 250 million pounds of fireworks were imported into the U.S., according to the APA.

Fireworks retailers said a tariff won’t hurt them this year, as they’ve already purchased their products, but next year could be a different story.

“You can only charge so much. At some point people can’t afford them,” Rick Chandler, aka “Willy” of Willy’s Works fireworks in Crown Point, said.

Weimer said Phantom, which has stores in Northwest Indiana, could absorb 2% to 3% of the 25% increase, but would have to pass 20% to 22% on to the customer.

“It’s like with gas, when the price goes up, the use goes down. We have a whole lot of customers who couldn’t afford the increase,” Weimer said.

He said both consumer and display fireworks would be hurt.

“Municipalities will be canceling shows because of the cost. Some jurisdictions view fireworks shows as a non-necessary expense for government,” he said.

Weimer said he has two issues with the proposed tariff on fireworks. First, he believes it would have a devastating effect on fireworks businesses and would cause collateral damage to their employees, the charities they support and the governments that collect taxes from them.

“If our income and profits go down, we need to think about whether we want to continue to expand, We may no longer be able to afford to give out employee bonuses or support the civic and charitable causes we now support,” Weimer said.

He said if sales are down due to higher prices, up to 30% of the sales force may have to be cut. He said Phantom hires about 3,000 additional seasonal workers from March through August each year. He also pointed out that Indiana collects 5% or 6% fireworks excise tax in addition to the sales tax it collects from the retailers each year.

The second issue, Weimer said, is that tariffs are supposed to leverage the playing field to protect U.S. industries competing with like companies in the other country.

“No one manufactures fireworks in the U.S.,” outside of a few small specialty companies, Weimer said.

“The whole principle of leveling tariffs won’t work in this case,” Weimer said.

He added that if U.S. sales suffer as a result of the tariffs, China will just go to other countries to sell its explosives.

Chandler said the cost of fireworks would probably go up next year if the tariff is imposed, but added he feel it’s for the better good — to improve China’s business and trade practices with the U.S.

He said a couple of years ago China changed its own rules, which caused a lot of small fireworks manufacturers to go out of business and resulted in an increase in price.

“The first year we ate that cost. The second year we passed it on to the consumers,” he said.

On the plus side, Chandler believes some customers will be stocking up on extra explosives to save on cost, should the tariff go through, which could result in an increase in sales this year.

“If you keep them dry, they’ll still be good next year,” Chandler said. “If they get damp, they’ll just explode, with no fizzle or sparkle.”

Karen Caffarini is a freelance reporter for the Post-Tribune.