FLORIDA – As shoppers flood stores for Black Friday deals, this year’s holiday celebrations face an unexpected challenge: international trade tensions are driving up the cost of seasonal décor, particularly artificial Christmas trees that have become a cherished centerpiece in millions of American homes.
According to recent survey data, artificial trees remain the dominant choice for American homes, with 83% of households planning to display one this holiday season. However, the artificial Christmas tree industry has been significantly affected by trade policies, with much of artificial holiday décor traditionally manufactured in China.
“The big storyline is of course for artificial Christmas trees are the tariffs and tariffs have impacted prices from about 10 to 15%,” says Jami Warner, Executive Director of the American Christmas Tree Association. “However, there are some fantastic deals to be had today is Black Friday… There is a perfect tree out there for you at whatever price point you need.”
The impact is being felt across the industry, from manufacturers to retailers. National Tree Company, which has been in business for 50 years supplying major retailers including Amazon, Wayfair, Home Depot, and Walmart, reports slower sales during what is typically their peak season.
“It’s a bit soft to be honest, the consumer is a little muted,” Chris Butler, CEO of National Tree Company, said about this Black Friday weekend.
He said the challenges stem from ongoing trade tensions and tariffs that have disrupted traditional supply chains
Companies are reporting cost increases, with prices rising 20-30% due to tariffs. Butler said despite efforts to spread the additional costs across production about 10% of the increase will go to consumers.
The American Christmas Tree Association reports that the price increases are causing anxiety among holiday shoppers, with 57% of Americans moderately to very concerned about tariffs making their holidays more expensive this year.
“The biggest impact is, of course the prices are slightly higher, and the inventory is slightly lower, which makes it a little bit harder for consumers to find exactly what they need,” Warner said. “The tariff roller coaster has hit retailers and suppliers pretty hard.”
Butler said the market pressures are pushing industry leaders to seek solutions.
“We’re really selling joy,” he said. “And for six weeks of the year consumers across America put up our products and they’re the centerpiece of peoples homes and I don’t think anyone in government wanted to increase the prices of joy for Christmas and for consumers.”
Butler said they are working with lawmakers to see if holiday decor could potentially get an exemption like some food items not native to the U.S. have gotten.
“We see that bananas and coffee and mangoes, etc. those items are starting to be exempted from tariffs because they’re not readily available in the U.S. to be grown,” he said. “Our raw materials are just not available in the U.S. and so we feel while we’re not growing trees we are certainly making trees and the products that are used to make those trees are not available in the US so we think we should be treated in the same way.”
When asked whether he thought the economic conditions may lead people to purchase natural trees instead, Butler said he doesn’t think so. Instead, he believes consumers may simply hold onto their artificial trees longer than usual.
Despite the economic climate, industry observers remain optimistic about the holiday shopping season.
“We are seeing a lot of optimism in the Christmas shopping segment,” Warner said. “People do make room for Christmas and that’s what we’re seeing nationwide.”
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