U.S. shoppers preparing for Christmas this year should brace for higher prices and fewer choices when it comes to holiday décor and artificial trees, as tariffs on Chinese imports ripple through the retail industry.
A 90-day extension of a tariff reprieve, agreed between Washington and Beijing on August 11, has allowed some last-minute shipments, but most seasonal orders were already locked months ago due to six-month production lead times.
Higher Prices, Lower Supply
Retailers across the country are scaling back orders and raising prices as they navigate tighter consumer budgets. Chris Butler, CEO of New Jersey-based National Tree Company, which supplies Walmart, Home Depot, Lowe’s, and Amazon, said prices on popular items like Carolina pine and Nordic spruce trees will rise 10% to 20% this season.
“We’re going to have a lower supply year,” Butler told Reuters, noting that half of his company’s trees come from China, with the rest sourced from Vietnam, Cambodia, and Thailand. Retailers are also shifting risk by asking National Tree to ship directly to consumers, instead of stocking large inventories.
China accounted for 87% of U.S. Christmas decoration imports last year, worth nearly $4 billion, according to the U.S. International Trade Commission.
Butler’s competitor, Mac Harman, CEO of California-based Balsam Hill, said the market will see about 15% fewer artificial trees this year. “Even with the extended 90 days, it’s too late for any of us to add orders,” he explained.
Retailers Cut Back Amid Tariff Swings
Uncertainty has worsened after President Donald Trump raised tariffs on Chinese goods to 145% in April, only to cut them to 30% a month later. Retailers, wary of being stuck with overpriced inventory, have reduced holiday orders.
Still, the latest pause delivered savings for some. Harman said the tariff extension netted $2.5 million in cost relief for Balsam Hill.
A Walmart spokesperson expressed confidence in holiday inventory, while Home Depot and Amazon declined to comment.
A Muted Shopping Season
The pressure on Christmas trees reflects a broader trend of weaker holiday demand. With essentials like diapers and soap already eating into household budgets, shoppers may spend cautiously. Apparel and toy makers are also scaling back offerings: Levi Strauss plans a leaner holiday lineup, and toy-maker MGA Entertainment has raised prices after a 30% tariff hit its Bratz dolls.
“Thirty percent is still too much,” said MGA CEO Isaac Larian, adding that tariffs have forced the company to pass higher costs on to consumers.
Limited Relief From Reprieve
While some companies rushed to ship extra orders after the moratorium was announced, experts say the extension does little to change the broader picture. “Holiday inventory is what it is,” said Matt Priest, CEO of the Footwear Distributors and Retailers of America.
With manufacturing bottlenecks and delays in countries like Vietnam and Cambodia, many brands are unable to ramp up quickly enough to offset the impact of tariffs.
As a result, this year’s Christmas shopping season may feel tighter than usual, with higher prices, slimmer selections, and consumers under pressure as trade tensions weigh on holiday cheer.
