Despite Trade War, US' 4th of July Celebrations Rely on China Fireworks

US still buying from Chinese factories as some products have few or no alternatives

- Lim Min Zhang

LIUYANG/YIWU - Fourth of July celebrations in the US may have just passed, but Chinese businessman Marx Wu is already prepared for the dampening effect of tariffs on sales of his fireworks to American customers for the festivities in 2026.

This is due to the additional 30 per cent tariffs that US President Donald Trump has been imposing on China since the outbreak of a trade war between the two countries in April - in a bid to bring back manufacturing to the US.

"Customers will be more cautious because their costs have increased significantly," Mr Wu told The Sunday Times.

His company, Magnus Fireworks, is based in Hunan province's Liuyang city, which is dubbed China's "fireworks' home town" for its expertise in manufacturing pyrotechnics. The US government now collects a 35.7 per cent tax from American importers of fireworks from China.

The bulk of these sales is meant for the annual US Independence Day celebrations, synonymous with fireworks displays.

Such orders are typically made a year in advance.

But Mr Wu, who sells mainly to the US, remains optimistic about his business' viability in the longer term, because the strengths of the Chinese industry in Liuyang cannot be easily replicated elsewhere, he said.

Unpacking the impact of Mr Trump's aggressive tariff strategy on Chinese manufacturers reveals a mixed picture on the ground.

On the one hand, Mr Trump's move to impose tariffs across the board on Chinese goods in April has led to factory closures and worker layoffs in certain sectors such as the garment industry, and accelerated efforts by some exporters to diversify away from the US market.

On the other hand, there are products that have few to no alternatives to "made in China", as the country's manufacturers are overwhelmingly competitive, experts say.