Additional Coverage:
- Holiday Decorations May Be in Short Supply Due to Tariffs, Warns Christmas Tree Company (cheapism.com)
Holiday Cheer Alert: Tariffs Threaten Festive Decor Supply, Prices Set to Rise
As the holiday season draws near, local shoppers planning to deck their halls with new Christmas trees, wreaths, or festive lights may want to start their shopping sooner rather than later. Industry experts are warning of potential shortages and higher prices for holiday decorations this year, largely due to ongoing tariffs impacting imports.
Tariffs Impacting the Holiday Decor Industry
The holiday decor industry is feeling the pinch from tariffs, according to Chris Butler, CEO of National Tree Company, one of the nation’s largest importers of artificial Christmas trees. Butler highlighted that approximately 87% of all artificial trees originate from China.
The American Christmas Tree Association reports that trade disputes have cost companies millions in unexpected duties and led to canceled orders. “This is a happy industry, and this is a pretty unhappy time to be in it,” stated Jami Warner, the association’s executive director.
Imports of Holiday Decor Are Way Down
Data from ImportGenius, shared by its director of research William George, reveals a significant drop in holiday decor imports from China during the crucial months of July, August, and September. August saw imports fall by 58% compared to the previous year, with September experiencing an even steeper decline of 70%. While consumer demand has also seen a dip, orders from major retailers and hardware stores have notably decreased.
Industry Experts Advise Shopping Early
Despite the overall dip in consumer demand, experts strongly advise shoppers to get a jump on their holiday decor purchases. With fewer products entering the market, selection may be limited, particularly for popular items.
“I would get ahead of that,” said Butler. “So buy now, buy early is what I would say to consumers.”
Black Friday weekend typically marks the peak of holiday decor shopping, but waiting until then could mean missing out on desired items.
Higher Prices Expected This Year
Consumers should also brace for higher prices this year. National Tree Company has already implemented a 10% price increase across its product line due to the trade war. Butler anticipates that “most consumers will be able to weather the 10% price increase,” but acknowledges that “consumers at the lower end of the economic spectrum may struggle.”