Shoppers and store owners across the country are feeling the chill from new import duties on artificial Christmas trees, prompting many to dust off old decorations or opt for live evergreens instead. Retailers report that higher costs and supply uncertainties have reshaped holiday inventory and consumer buying habits this season.
Tariffs Drive Up Prices and Trim Stock
Federal levies on imported seasonal décor have led to a 10% to 15% jump in retail prices for artificial trees and related ornaments this year, according to Jami Warner, executive director of the American Christmas Tree Association. She noted that a small, basic artificial tree now sells for about $60 to $100, while a standard 6½- to 7-foot model fetches $150 to $250. “A pre-lit artificial tree with realistic foliage, fullness or extra features will run from $250 to $500,” Warner said.
China, which supplies roughly 87% of artificial Christmas trees to U.S. retailers, is subject to a 30% tariff. “They had to pass some of the costs on [to consumers],” Warner added. “Otherwise, they would have completely gone out of business.”
Some merchants reduced their seasonal orders in response to fluctuating tariff rates. Michael Costello, CEO of the Farmingdale-based Costello’s Ace Hardware chain, explained that buyers place orders in January but don’t know the exact tariff until shipments arrive months later. “The unpredictability of exactly how much tariffs would impact cost created uncertainty,” he said.
Real Trees Gain Ground
In Plainview, Trio Hardware co-owner Todd Kirschner decided not to stock any artificial trees this year. “I can’t tell you the last time I ever sold out of a tree stand,” he remarked after his store quickly depleted its supply of real-tree stands. Kirschner attributed the shift to customers choosing live trees over pricier synthetics.
Massapequa shopper Julie Liebow, 63, said she’ll hold off on a new artificial tree until finding a post-holiday sale. “I feel like I’m at the point now where I’d probably rather wait to the end of the season and buy one on sale than pay for a new one right now,” she said.
Merrick resident Georgia Nagy, 71, also left the store planning to pick up a real tree. “I had seen artificial trees and I had seen the prices. It’s outrageous,” she said. Nagy noted she prefers the look and feel of real trees, but the steep cost this year sealed the decision.
Domestic Production and Outlook
Most real Christmas trees sold in the U.S.—83%, Warner said—are artificial, yet live trees remain a domestic industry mainstay. Oregon leads the nation in real-tree production, according to Marsha Gray of the Real Christmas Tree Board. A survey of 43 wholesale growers, representing at least half of the U.S. market, found that 84% do not plan to raise prices for the upcoming season.
Gray believes the sector is prepared for increased demand but cautions it’s too early to gauge the final sales figures. “I think our industry is prepared for a strong season,” she said, adding that real-tree suppliers expect to meet any surge without raising wholesale costs.