President Donald Trump’s tariffs on Chinese imports are reducing inventory and raising prices for Halloween costumes this year.

Most Halloween costumes sold in the United States are produced in China, Mexico and other countries that have been hit with tariffs, which are taxes on imported goods.

Mark Greenbaum, the owner of House of Humor costume store in Redwood City, Calif., said customers will pay 10 to 20 percent more for costumes imported since the tariffs went into effect. Those include costumes based on popular new movies such as "K-Pop Demon Hunters."

But Greenbaum said he won't raise prices on older merchandise that he purchased before tariffs were imposed.

"It's unfortunate that we're having to pay tariffs or taxes on items that we are importing, and it just it's going to cause higher prices," Greenbaum said. "It is raising prices for everyone. It's just going to slow down everyone's business. You've taken money out of everyone's pocket for no reason."

College student Belle Blevins-Kurt said she's noticed costumes getting more expensive and may skip buying a new one this year.

"l this year I think I'm just gonna try and go off of like a lot of what I have and like already have my closet," she said.

Trick or Treat Studios in Santa Cruz, Calif. designs and sells costumes and collectibles that are mostly produced in China and Mexico.

The company expects to pay more than $1 million in tariffs to import its products this year, said co-owner Chris Zephro. In May, Zephro cut 15 employees, or 25% of his workforce.

"So unfortunately, because of the tariffs, we had to do layoffs for the first time in the company's history. We've had to increase our prices to our customers. It's been a nightmare. When we did layoffs, it was one of the worst days of my life," Zephro said.

Zephro said Halloween shoppes should expect less inventory and higher prices this year. He encourages them to shop early.

"I think they're going to be a lot of shortages. So I would recommend going to the stores right away. And yes, you'll probably see price increases upwards of 30% from last year," Zephro said.

A lot is at stake, with Halloween ranked as the fourth biggest holiday in terms of overall sales, behind the winter holidays, back-to-school season and Mother's Day, according to Marshal Cohen, chief industry advisor for Circana, a market research firm.