This Halloween, tariffs could give shoppers an unexpected turnaround in their pockets. According to experts, the prices of costumes and candy will be affected by the increase in tariff rates, which could make this season's products more expensive. However, despite the rising prices, consumers don't seem scared and are willing to spend on the holidays.

The National Retail Federation (NRF) projects that Halloween shopping will reach a record $13.1 billion this year, surpassing the previous record of $12.2 billion.

Katherine Cullen, a representative for the NRF, noted that while consumers are aware of the impact of the tariffs, they remain determined to invest in what truly matters to them.

"People are going to be very smart with their money, but they're also going to spend on what's important to them," Cullen explained.

She added that shoppers are also turning to discount stores more frequently to take advantage of lower prices.

For businesses, especially those that rely on Halloween for a significant portion of their annual revenue, the tariffs are proving to be a considerable challenge.

Derek Kennedy, owner of Magic etc. Ft Worth Costume Inc., a costume shop in North Texas, told CBS MoneyWatch that the Halloween season accounts for at least 25% of its annual sales. However, this year tariffs have had a negative impact, resulting in slower shipping times and higher wholesale prices.

“Most costumes are made overseas, and tariffs have ranged from 5% to 19%,” Kennedy said.

Despite these increases, Kennedy has decided to take a bold step. Rather than pass these costs on to his customers, he has chosen to absorb a large portion of the tariffs, keeping prices as low as possible.

“Even though there was a $300 surcharge on the invoice, $500 or even $700 in some cases, this year I ignored it and tried to price as usual, because people only have so much money to spend,” the businessman noted. However, not everything can be absorbed. In the case of products like fog machines, the price increases are too high to ignore. For example,the cost of a fog machine, which was $58 last year, will be $74 this year. It's not just costumes and decorations that will be affected by the tariffs. Candy for traditional trick-or-treaters will also see an increase. According to online sales trackers, an average bag of mini-sized chocolate bars has gone up approximately $5 compared to last year. Likewise, a bag of snack-sized chocolate bars has increased by about $2. The price of a box of 48 full-sized chocolate bars, which cost $40 last year, this year exceeds $50.

Despite these increases, consumers don't seem to be as scared as they are by the prices. As Halloween approaches, the enthusiasm for the festivities remains intact, and many continue to buy essential products to enjoy the season. However, this could generate a vicious economic cycle that has persisted since we emerged from the pandemic: debt. It is essential that households budget and not spend beyond that to avoid any financial problems later.