Spirit Halloween CEO Says 2025 Tariffs Threatened Retailer’s Business

Spirit Halloween CEO Steven Silverstein said tariffs imposed during the retailer’s 2025 shipping season threatened its survival, though he later called that season the strongest in the company’s history.

“This was going to put us out of business,” Silverstein said. He said Spirit designs and sources 75% to 80% of its merchandise, mostly in Asia, and that shipments were already in motion when the company halted them.

Executives cut costs, paused capital spending and formed a “war room” to manage the response, Silverstein said. Spirit kept prices steady and absorbed the added costs. “And so we ate the tariffs,” he said.

The additional U.S. reciprocal tariff rate on imports from China rose to 125% effective at 12:01 a.m. ET on April 10, 2025. A separate 20% duty applied to Chinese goods tied to the synthetic opioid supply chain. The reciprocal rate fell to 10% effective at 12:01 a.m. ET on May 14 for 90 days, while other duties remained in place.

Spirit resumed shipping after the rate change, Silverstein said, but merchandise was six weeks behind schedule. The retailer hired more seasonal workers, and its stores opened two to two and a half weeks late. Silverstein characterized the season as the strongest in Spirit’s history.

Spirit of Children, the company’s charity, is aiming to raise $20 million in 2026, its 20th anniversary year. Donations support Child Life departments at more than 160 partner hospitals. Spirit of Children raised $18.5 million in 2025 and $164 million to date.