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Christmas may look a little less merry for U.S. consumers this year as tariffs drive up the cost of artificial trees and lights — staples of the holiday season for millions of families.
Industry executives and retailers say artificial Christmas trees will cost between 10% and 20% more than last year, while string lights could surge as much as 63%. The increases are tied to new and expanded tariffs imposed on Chinese imports under President Donald Trump’s trade policy, which has significantly affected the seasonal décor market.
“Unfortunately, most of these trees have come into the industry at 20% or 30% tariffs. So those costs do add up,” said Mac Harman, founder and CEO of Balsam Hill, one of the country’s leading artificial tree vendors. “We’ve done everything we can to keep prices steady, but it’s impossible to absorb that kind of increase.”
Harman noted that roughly 90% of mass-market Christmas décor — including trees, ornaments, and lights — is made in China. Moving production to the United States, he said, would be “prohibitively expensive.”
“When we make Christmas trees, some of the equipment is the size of a football field,” Harman told NBC News. “You can’t just pick it up and ship it to another country.”
He estimated that an $800 artificial tree made in China would cost nearly $3,000 if manufactured domestically. The labor-intensive process of hand-stringing prelit trees also makes relocation impractical, Harman added.
The company began diversifying its supply chain last year, anticipating tariff expansions under Trump. About one-third of Balsam Hill’s trees now come from countries outside China. Still, unpredictable tariff swings — which have ranged from 30% to 145% — have made planning difficult and forced vendors to import fewer trees overall.
“We expect about 15% fewer artificial trees in stores this season,” Harman said. “That means shoppers who wait might find fewer options.”
Big-box retailers are also scaling back. Costco CEO Ron Vachris told investors in September that the chain had “really thinned down that whole category” of discretionary Christmas items due to rising import costs.
Despite the higher prices, the National Retail Federation (NRF) forecasts that holiday spending will surpass $1 trillion for the first time this year. The average consumer expects to spend about $270 on decorations, cards, and other non-gift items.
Live Christmas trees, meanwhile, remain largely unaffected. Nearly all are grown domestically, and imports from Canada are tariff-free under the U.S.-Mexico-Canada trade agreement.
“We’re fortunate to be one of the few products not impacted,” said Marsha Gray, executive director of the Real Christmas Tree Board. “We have the strongest inventory we’ve seen in over a decade.”
As shoppers face higher décor prices, retailers say the spirit of the season endures. “Somehow, every year, Santa Claus always comes,” said Matthew Shay, NRF president. “People plan for the holidays, and they make sure Christmas happens.”
