6 events in Passaic County with a date

Trick or Tariffs?

Supply chain issues could make shopping spooky

By: Daniel Munoz
Northernmost
USA Today Network - New Jersey

..... Now may be a good time to get started on your back-to-school, Halloween, Christmas and Hanukkah shopping, thanks to potential price hikes triggered by President Donald Trump's tariffs on imported goods.
..... Analysts and industry executives are waring of higher costs and empty shelves as we enter summer.
..... amid Trump's tariffs, Spirit Halloween - known for its pop-up shops in empty storefronts across the U.S. - is canceling the opening of its flagship location in Egg Harbor Township over unspecified"international disruptions and supply chain challengers."
.....When reached by email, Spirit Halloween spokesperson Nikki Balles would not elaborate on the exact "international disruption and supply chain challenges," only to the company's recent Instagram post.
..... But a majority of Halloween costumes sold in the U.S., are made in China, and while Trump has reduced the extra tariffs of 145% he had imposed in April [2025] on goods made in China down to 30%, that is still steep, and at least some of that cost will likely get passed along to American consumers in higher prices.
..... Shoes, clothing and toys also get more expensive summer goes on. Items such as Barbie dolls, for example, could cost more due to tariffs said toymaker Mattel.
..... The toy giant said it plans to diversify its supply chain and take further steps to reduce its reliance on products form China.
..... "For all retailers, tariffs have disrupted holidays and occasions like back to school," said Neil Saunders, a retail analyst and managing director of GlobalData.
..... "Cost are higher, and these will probably be reflected in the prices charged to consumers. There may also be more gaps on shelves if some products are too expensive to source."
..... As of May 13, [2025] a 10% tariff on goods entering the United States was to stay in place, but Reuters and U.S. officials remain in talks with several countries to lower additional tariffs imposed by Trump. The 10% tariff was imposed on nearly all countries by Trump on April 2. [2025]

Back-to-school critical this year [2025]

..... Trump struck deals with China and the United Kingdom earlier in May to pause much higher tariffs.
..... Shortly before Memorial Day he threatened 50% tariffs on goods form the European Union, only to agree over the weekend [05/24-25/2025] to delay the tariffs until July 9. [2025]
..... Shopping for back-to-school or Christmas items now might be a good idea for anyone concerned about shortages or higher prices, Charles Ballard, a Michigan State University, told USA Today.
..... Baby strollers, baby care seats, cell phones, laptops and toys are some of the items that face the greatest uncertainly, he said.
..... "Back-to-school will be the critical season this year [2025] that will show how hard the tariffs and trade frictions across retail," said Dave Marcotte, an analyst with market research firm Kantar. "It is the one season that sells across all categories, and most of them come from Asia."

A sign of things to come?

..... Spirit Halloween's Egg Harbor Store uses " a lot of animatronics and props" that are "more expensive and more difficult to source because of tariffs," said Saunders, of GlobalData.
..... The chain likely determined it was "not worth" the cost of a flagship location, he said.
..... The store is a nice kickoff to the season, but it's not a critical part of the business - here Spirit will be focused on running its thousands of pop-up shops," he continued.
..... But Marcotte said that with many Halloween products coming from china, chains such as Sprite Halloween "are in a very difficult place for high-margin, time-limited holiday trade.
..... "It will be a far shorter season than in the past," Marcotte said of Halloween.
..... More people may opt to save costs and sue previous years' costumes, "because who remembers what you were, anyway?" added Candace Corlett, president of WSL strategic Retail, a New York city-based industry analyst and consultant.

Prices have yet to budge

..... Despite Trump's tariffs, higher prices have yet to materialize, economic metrics show, though experts say that could happen in the next few months.
..... The products currently on American store shelves were imported to the U.S. anywhere between two and six months ago, meaning they would have avoided any Trump tariffs, said Rudi Leuschner, a supply chain management professor a Rutgers Business School in Newark. [NJ]
..... Leuschner said the 90-day pause on 145% tariffs for goods coming in from China should give business more time to stockpile more goods, products and raw materials, albeit with a 30% tariff that companies may simply have to absorb.
..... But this time of the year is already the busiest, as retailers ramp up for the busy back-to-school and holiday shopping seasons, said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, the retail trade group.
..... "Retailers will need to place orders now to ensure their merchandise is hear in time for the holiday season," he said in an email. "Many will look to front-load merchandise, as they did earlier this year, [2025] because of the uncertainty of what will happen after the 90-day pause."

..... This article contains materials from USA Today.

HOME