‘I sell millions of Halloween costumes to Americans. Mr. President—here’s my takeaway from the wild tariffs ride’
Fortune
by Kamal AhmedFebruary 26, 2026
AI-Generated Deep Dive Summary
Fraser Smeaton, founder of Morph Costumes, a UK-based company known for its viral zentai spandex suits, shares insights on how U.S. tariffs under President Trump have impacted small businesses like his. Morph, which relies on Chinese manufacturing for its Halloween costumes sold to major retailers like Walmart and Target, has faced unpredictable tariff fluctuations—from 0% to as high as 145%—since Trump took office. These changes have driven up costs, eroded profits, and forced the company to pass higher prices onto American consumers. Smeaton highlights how tariffs intended to encourage reshoring have had mixed results: while they may work for large-scale manufacturing, smaller firms reliant on Chinese expertise struggle to justify the move due to higher U.S. labor costs and lack of infrastructure in alternative countries like Vietnam or India.
Morph’s experience illustrates broader economic trends. Tariffs not only harm businesses but also contribute to inflation across consumer goods, from toys to appliances. Goldman Sachs estimates that tariffs have already pushed up core PCE prices by 0.7% through January 2024 and will continue to affect prices in the coming years. Smeaton points out that while tariffs generate revenue for the U.S. government, they disrupt supply chains and create instability for businesses. His company’s attempts to diversify production sources have been stymied by geopolitical tensions and high costs, leaving them stuck with no viable alternatives to China. This dependency underscores the challenge of
Verticals
businessfinance
Originally published on Fortune on 2/26/2026