Scottish Costume Maker Struggles with Tariff Chaos

Morph Costumes' CEO says unpredictable U.S. tariffs are hurting his business and American consumers.

Published on Feb. 26, 2026

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Kamal Ahmed's article profiles Morph Costumes, a Scottish company that sells millions of Halloween costumes to American consumers. The company's CEO, Fraser Smeaton, explains how unpredictable U.S. tariffs on Chinese imports have caused chaos for his business, leading to higher prices for American shoppers and wiping out most of the company's profits.

Why it matters

This story highlights the real-world impact of the Trump administration's trade policies on small businesses that rely on global supply chains. It shows how tariffs can hurt American consumers through higher prices, even for products like Halloween costumes that may not seem essential.

The details

Morph Costumes makes its costumes in China, which has a 30-year head start in clothing production. Moving production elsewhere is prohibitively expensive. Since Trump took office, the U.S. import taxes faced by Morph have fluctuated wildly, from 0% to 145% before settling at 20%. This has led to a $3 million duty bill for Morph, wiping out most of its profits. The company's costumes now cost 9% more for American shoppers.

  • In 2018, the GAP store on Fifth Avenue was 'morphed' by a band of improv-artists, leading to a viral video.
  • Since Donald Trump entered the White House for the second time, the US import taxes faced by Morph have lurched wildly.

The players

Fraser Smeaton

The CEO of Morph Costumes, a UK costume company that launched a twist on the zentai full-body spandex suit in 2009 and has become a major supplier of Halloween costumes to American consumers.

Morph Costumes

A UK costume company that makes its products in China and sells millions of Halloween costumes to American consumers, particularly to major retailers like Walmart and Target.

Donald Trump

The President of the United States, whose administration has implemented a series of unpredictable tariffs on Chinese imports that have significantly impacted Morph Costumes' business.

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What they’re saying

“It is certainly not good for investment, or for the US consumer. They are paying higher prices.”

— Fraser Smeaton, CEO, Morph Costumes (Fortune)

“Cut-and-sew is not the type of work Americans want. In China, labor costs are $2-3 an hour. In America they are $20 an hour.”

— Fraser Smeaton, CEO, Morph Costumes (Fortune)

What’s next

The Supreme Court recently ruled the Trump administration's tariffs on Morph Costumes' imports to be illegal, bringing the tariffs back down to zero. However, the President has since announced a new 10% (or possibly 15%) tariff, creating continued uncertainty for the company.

The takeaway

This story illustrates how the Trump administration's unpredictable trade policies have negatively impacted small businesses like Morph Costumes that rely on global supply chains, ultimately hurting American consumers through higher prices. It highlights the need for more stable and predictable trade policies to support businesses and economic growth.