Estimates show that more than 90% of fireworks used in the United States are imported, and 95% of fireworks imported into the US come from China, see charts below.
Similarly, there are many different categories of products that are imported into the US where demand is inelastic, and China is the only provider of that product, see below.
The bottom line is that inflation will increase significantly for the product categories where China is the main producer of that good, likely including fireworks.
Sources: US Census Bureau, Apollo Chief EconomistNote: Represents the aggregated container volume, measured in twenty-foot equivalent units (TEU), of vessels departing China for the United States over a 15-day rolling period. Accounts for the shipping capacity being utilized, irrespective of the number of vessels. Sources: Bloomberg, Macrobond, Apollo Chief Economist
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