Tariffs expected to have terrifying impact on Halloween prices for costumes and candy

Retailers are concerned that the Trump administration’s tariffs could raise prices on popular items like candy and costumes ahead of the Halloween season.

"Most of the costumes are made overseas and through the different manufacturers, the tariffs have ranged anywhere from 5% to 19%," Derek Kennedy, owner of Magic etc Ft Worth Costume Inc. in north Texas told CBS News.

Kennedy added that he’s seen the price of a fog machine rise from $58 to $74, while certain invoices have extra charges as high as $700 to factor in the tariffs.

This summer, Hershey, which makes popular candy brands like Reese’s and Kit Kat, said it would need to raise prices by double-digits to account for high cocoa costs and tariff pressures.

“I think it’s gonna be another round of this hyperinflation on some items,” Mitchell Cohen, owner of New York City’s Economy Candy, told The Associated Press earlier this year. “If we’re putting tariffs everywhere, it is going to go up.”

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The combination of inflation and tariffs means “consumers are more concerned about their economic outlook,” Brian McCarthy, a principal at Deloitte Consulting, told CNBC last week.

A survey from the firm projects that holiday retail sales will still rise this year, but at a slower pace than 2024.

The National Retail Federation, meanwhile, has a rosier outlook.

It projects Americans will spend a record-breaking $13.1 billion on Halloween-related purchases in 2025, almost $2 billion more than last year.

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"Even with concerns about price increases due to tariffs, Halloween continues to resonate with consumers of all ages," NRF Vice President of Industry and Consumer Insights Katherine Cullen told Newsweek.

Inflation rose 0.4 percent in August, part of a 2.9 percent spike over the last 12 months, according to the Bureau of Labor Statistics.

Many of the president’s signature double-digit tariffs remain in effect, though the U.S. Supreme Court is considering a lower court ruling that the White House’s “reciprocal tariffs” policy was launched unlawfully.

The president’s tariffs are also expected to raise the price of fireworks for the Fourth of July in 2026, given most fireworks are made overseas.