If you're planning on purchasing a new Christmas tree, wreath, string lights, or other holiday decorations this year, you'll want to start shopping now. According to industry insiders, tariffs this year are impacting the amount of imported Christmas decorations and their prices, which could cause shortages as the holiday season approaches.
How tariffs affect the Christmas decoration industry
According to National Tree Company CEO Chris Butler in an interview with CNBC, tariffs imposed by President Trump are having a huge impact on the holiday decorating industry this year. About 87% of all artificial Christmas trees are made in China and his company is one of the largest importers of the product in the country.
According to the American Christmas Tree Association, the trade wars have forced Christmas decoration companies to pay millions of dollars in unexpected tariffs and cancel orders. “This is a happy industry and this is a pretty unfortunate time,” said Jami Warner, chief executive.
Imports of Christmas decorations are declining sharply
July, August and September are generally the months when most Christmas decorations are imported from China. However, according to William George, research director at ImportGenius, imports in August fell 58% this year compared to last year, and in September they fell by a whopping 70%. Consumer demand is lower and orders from retailers and hardware stores that typically sell holiday items have dropped significantly.
Shop early, warns the industry
Even as consumer demand declines due to tightening budgets, industry experts advise shopping early for the best selection of holiday decorations. There will be fewer products. So if you have your eye on something specific, don't wait until the last minute – Black Friday weekend is usually the peak of holiday decoration shopping – to buy it. “I would be one step ahead of it,” Butler said. “So buy now, buy early is what I would tell consumers.”
Prices will be higher than usual
That's a common refrain lately, but you can expect Christmas decoration prices to be higher this year. According to Butler, prices at National Tree Company have increased overall by 10% this year due to the trade war. “I think most consumers will be able to handle the 10% price increase,” he said, “but consumers at the lower end of the economic spectrum may struggle.”
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