So far beads are still exempt from import taxes.
Dan Kelly, one of New Orleans’ biggest purveyors of plastic Mardi Gras beads, is keeping his eye on President Donald Trump’s China trade tariffs.
Last year, Kelly’s company, Beads By The Dozen, received 125 shipping containers from China, each stuffed with 42,000 pounds of beads and baubles, at a cost of $40,000 to $50,000 per container.
In July, Trump imposed a 25 percent tariff (import tax) on 1,102 Chinese products, hoping to balance what he views as unfair Chinese trade practices. But so far, Kelley said, beads and plush toys — the bread and butter of Carnival parade throws — are not on the list.
According to a July 6 Associated Press story about the new tariffs, the Trump administration sought to protect American shoppers from any immediate impact caused by the import taxes by excluding consumer goods such as smartphones, TVs, clothes and toys. Mardi Gras throws may fall into that consumer goods category.
So at present, Kelly’s business model is the same as last year when there were no import duties on beads. If Kelly spends $1 on beads in China, he said, he doesn’t pay a penny more in tariffs to bring them into New Orleans. Naturally he’d like to see things stay that way.
Kelly said he’s still a bit tense, because the Treasury Department could announce a new selection of items subject to tariff at any time. Although Carnival is still six months away, he won’t hang back and wait to see how the so-called trade war with China plays out. Most orders for next year’s beads will be made at the beginning of September, he said.
If a tariff on Mardi Gras beads goes into effect after the orders are placed, the cost to consumers would have to go up, Kelly said, because the unpredicted tax would cut deeply into the profit he’d budgeted for.
Even if the worst happened, and the cost of beads were to rise, Kelly believes Carnival will proceed pretty much as usual.
«Is it going to kill Mardi Gras? No. People are going to spend the same amount of money, but just not get as much,» he said.
Kelly has no crystal ball, but he has a theory that helps him stay confident most Mardi Gras throws will remain exempt.
Trump has been an outspoken advocate for the renewed use of the phrase «Merry Christmas» instead of «Happy Holidays.» Kelly therefore believes the president is devoted to the December holiday and would not be inclined to impose a tariff on small imported Christmas toys and decorations.
Since Mardi Gras beads probably fall into the same category, he reasons, they would be similarly protected.
Doug MacCash has the best job in the world, covering art, music, and culture in New Orleans. Contact him via email at dmaccash@nola.com. Follow him on Twitter at Doug MacCash and on Facebook at Douglas James MacCash. As always, please add your point of view to the comment stream.
