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Spirit Halloween faced a severe business threat when U.S. tariffs on Chinese goods surged in 2025, according to Steven Silverstein, CEO of the retailer's parent company, Spencer Spirit Holdings.

Tariff increase came during shipping season

The tariff increase occurred on President Donald Trump's “Liberation Day” in 2025, when the U.S. duty on Chinese goods reached a potential 145%. The timing was especially difficult for Spirit Halloween because the company had already begun shipping merchandise from Asia.

Silverstein said the development put the business at risk. “This was going to put us out of business,” he told Fortune's Catherina Gioino.

CEO compared impact with COVID

Silverstein characterized the tariff pressure as more damaging to Spirit than the COVID period. His assessment links the severity of the threat to both the scale of the tariff increase and its timing during the company's product-shipping process.

The episode underscores the exposure of a seasonal retailer to trade-policy changes when goods are already moving through its supply chain. However, the available information does not state whether the tariffs were ultimately implemented at the full potential rate or what final effect they had on Spirit Halloween's operations.

What remains unclear

The source provides no further details about the company's response, the eventual tariff level, or the financial outcome. It does establish that the proposed duties created an immediate survival concern for Spirit Halloween at a critical point in its merchandise cycle.