The inflatable and entertainment industries rely on imported materials and equipment to keep businesses running. However, with the latest tariff policies in 2025, the cost of doing business is rising. From price hikes on inflatables to supply chain disruptions, these tariffs are creating challenges that companies must navigate.
Here’s how the new tariffs can affect the industry and what businesses can do to adapt
1. Higher Costs on Imported Inflatables and Materials
Many inflatables, including bounce houses, slides, and obstacle courses, are manufactured overseas—primarily in China. The 20% tariff on Chinese imports, introduced in 2025, means that businesses importing these products must now pay more.
Even U.S.-based manufacturers are feeling the pinch, as essential materials like PVC vinyl, stitching supplies, and blowers often come from abroad. As production costs rise, companies must decide whether to absorb the added expenses or pass them on to customers.
2. Increased Rental Prices for Consumers
For inflatable rental businesses, higher wholesale prices mean increased rental fees for customers. Whether renting a bounce house for a birthday party or a mechanical bull for an event, consumers may notice price hikes.
This could lead to:
- Lower demand for inflatable rentals
- Increased competition among rental businesses
- More customers opting for used or lower-cost alternatives
3. Supply Chain Disruptions & Longer Wait Times
Tariffs aren't just increasing prices—they’re also affecting the speed of getting new inflatables and replacement parts. With companies scrambling to source from alternative suppliers, shipments are taking longer, and backorders are becoming more common.
This is especially concerning for event companies that rely on timely deliveries to meet demand during peak seasons. Delays could mean missed bookings and lost revenue.
4. Shifts Toward Domestic and Alternative Suppliers
To avoid tariff costs, some businesses are looking for U.S.-based manufacturers or alternative suppliers in countries like Vietnam and Mexico. While this can help reduce reliance on Chinese imports, it also comes with challenges:
- Higher production costs in the U.S. may still lead to increased prices
- Limited suppliers mean fewer choices in product styles and features
- New quality control issues when working with unfamiliar manufacturers
5. Strategies for Businesses to Adapt
Despite these challenges, inflatable and entertainment companies can take proactive steps to stay competitive:
- Diversify suppliers: Look beyond China for materials and finished products
- Buy in bulk: Stock up on inflatables and repair parts before tariffs increase further
- Invest in used inflatables: Reselling or refurbishing existing units can lower costs
- Pass costs strategically: Instead of increasing prices across the board, adjust rates for premium products while keeping budget options affordable
Planning for the Road Ahead
The 2025 tariff policies are changing the landscape for the inflatable and entertainment industries. While increased costs and supply chain issues create obstacles, businesses that plan ahead and explore new sourcing strategies can stay ahead of the curve.
By staying informed, adapting pricing strategies, and exploring new suppliers, companies can navigate these changes and continue bringing fun to events nationwide.