Americans are enduring a 'most terrifying' Halloween without Chinese goods, yet the White House spokesperson remains defiant.

Facing complaints from business owners and hard data, the White House continues to dig in its heels. On the 21st, White House spokesperson Kush De responded by claiming that 'real prosperity means good jobs for ordinary Americans, a thriving industrial base, and flourishing communities—not cheap Chinese imports.' He also turned a blind eye to Americans’ suffering, stating: 'President Trump promised tariffs would level the playing field, crack down on fentanyl trafficking, and restore America’s greatness. Rising wages, historic trade deals, and trillions of dollars in investment commitments all prove that the 'America First' policy is delivering for the American people—in the most important ways.' This rhetoric struck small business owners as especially ironic. Zevro lamented, 'I’d really like to sit down one-on-one with Trump—he’s no fool; he even took the same Business School courses I did.' 'So let’s be frank: this is Economics 101—the tariffs are paid by us, the importers.' After importers pay the tariffs, they typically absorb part of the cost themselves before passing the remainder on to retailers, who ultimately decide whether—and how much—to raise prices for consumers. Reyna Hernandez from California was shopping for her six-year-old son’s Halloween costume when she found a suitable hat priced at $30. 'That’s outrageous. We simply can’t afford it—many people this year are just giving up on buying costumes altogether,' Hernandez said. She now has no choice but to buy costumes on installment plans, spreading out the costs as much as possible. An NRF survey found that 79% of U.S. consumers expect to pay higher prices this Halloween due to tariffs. The association estimates average consumer spending on costumes will reach $37.62—up 11% from 2024. Ryan Goldman, manager of a U.S. chain store selling Halloween costumes, said, 'We try not to pass the full price increase onto customers—but we all know prices will rise across the board because of tariffs.' He expects average costume prices to climb $5–$10, though the store is striving to keep children’s costumes at the same price point—shifting more of the burden onto adult costumes. The Independent reported that tariffs have also driven up prices for Halloween staples like candy. Although Hershey insists Halloween candy prices remain unaffected, consumers report that a 48-bar box of chocolate bars has jumped from $40 to over $50. Meanwhile, abnormal weather has reduced cocoa output in West Africa, further pushing up costs. Moreover, U.S. tariffs on European wine and spirits have made the holiday season 'more expensive.' Wines from France, Italy, and Spain—as well as Scotch whisky—have not been granted exemptions. The EU exported $3.4 billion worth of spirits to the U.S. last year; prices are now set to rise. Due to rising import costs, both Zevro and Goldman have dropped some large Halloween props from their inventories this year. Goldman pointed to a mechanical clown inside a cage displayed in his store—a leftover item from last year, originally priced at $399.99, whose price this year will approach $600.

U.S. consumer debt default rates have surged to a five-year high, with student loan defaults hitting a record 14.4%!

The rising default rate reflects mounting financial pressure on American households—especially younger demographics—with severe delinquencies most pronounced among consumers aged 20 and 30. This trend confirms the impact of high interest rates, a weakening labor market, and persistent inflation. Major corporations—including Starbucks, Target, and Amazon—have recently announced layoffs. Meanwhile, consumer confidence indices from the University of Michigan and The Conference Board have turned downward over recent months. Mortgage Market Remains Resilient The report also contains some positive signals. Mortgages—the largest component of consumer debt—continue to show low delinquency rates. Donghoon Lee, Economic Research Advisor at the New York Fed, stated in a press release: 'Household debt balances are growing at a moderate pace, and delinquency rates are stabilizing. The relatively low mortgage delinquency rate reflects resilience in the housing market, supported by substantial home equity and stringent underwriting standards.' Last week, the Federal Reserve cut interest rates by 25 basis points for the second consecutive month to support the slowing labor market. Fed Chair Jerome Powell said he is 'closely monitoring' credit conditions following recent major losses reported by subprime auto lenders—but added that he currently sees 'no broader credit issues.' The 25–35 Age Group Is 'Tightening Its Wallet' Wall Street Insights previously noted that Goldman Sachs consumer goods analyst Scott Feiler wrote that discussions about consumer health are shifting. Previously, companies attributed weak consumption to company-specific factors or problems among low-income groups. Now, however, more firms are reporting broad-based slowdowns—and weakness has spread to middle-income consumers, particularly those aged 25–35.

Hershey Warns Financial Pressures Could Weigh on Halloween Spending

16 hours ago

Hershey warned consumer financial pressures may curb Halloween candy sales, dropping shares 4% despite beating Q3 sales estimates. The company raised its annual earnings per share target citing tariff refunds and deflation in cocoa prices.

reuters

2026-07-30

Hershey beats quarterly sales estimates

2026-10-29

Hershey Warns Financial Pressures Could Weigh on Halloween Spending

Hershey Warns Financial Pressures Could Weigh on Halloween Spending

FAQ