Tariffs are projected to increase prices for Christmas trees and holiday decorations this season.

The imposition of tariffs is poised to increase costs for Christmas trees and holiday decorations this season, as many of these products are predominantly imported rather than produced domestically. Price hikes for artificial Christmas trees are projected between 10% and 20% compared to last year, while holiday lights could see an increase of up to 63% in 2024, according to a recent report by Media News Source. These changes are likely to impact consumer spending and availability as retailers adjust their inventory in light of rising import costs.

Approximately 90% of holiday decorations, including artificial trees, are manufactured in China, according to industry business leader Mac Harman. This heavy reliance on Chinese imports means that any changes in trade policy or tariffs directly influence domestic pricing structures, leading sellers to consider reducing import volumes to mitigate financial impacts.

The anticipated price increases extend beyond artificial trees and lights to ornaments, particularly those sourced from China. This complicates the shopping landscape for consumers seeking to purchase holiday décor, making it harder to find specific items while facing inflated prices. Industry experts suggest the holiday season will present challenges for customers aiming to find the perfect festive décor within budget constraints.

In contrast, the live Christmas tree market, which predominantly operates within the United States, is not expected to experience the same level of price inflation. Live trees take several years to mature, mitigating immediate supply disruptions. Nonetheless, climate change is challenging the consistency of fresh-cut tree yields, prompting growers to plant more seedlings to maintain supply levels. This increase in planting effort may lead to cost increases for customers, as reported by the Hartford Courant.

Local retailers such as Maple Hollow Tree Farm in Connecticut anticipate needing to raise prices minimally to accommodate rising expenses for seeds, fertilizers, and other operational costs. Each tree’s cost is expected to exceed previous pricing by at least .

Overall, the tariffs imposed are likely to elevate holiday shopping expenses significantly. A report from Lending Tree indicates that tariffs could add .6 billion to holiday spending this year, translating to an estimated additional 2 per shopper. Despite these financial challenges, holiday spending in the U.S. is set to surpass trillion for the first time, as projected by the National Retail Federation. As consumers prepare for the upcoming season, a careful assessment of budgetary constraints will be necessary to navigate the evolving landscape of holiday shopping.