Expect Higher Prices for Artificial Christmas Trees in 2025 Due to Tariffs
As we approach the holiday season, consumers are advised to expect higher prices for artificial Christmas trees in 2025. Various economic factors are contributing to this anticipated increase, including tariffs and supply chain challenges. The American Christmas Tree Association reports that 83% of households planning to display a Christmas tree in 2025 will choose an artificial option.
Price Increases Ahead
Mac Harman, founder and CEO of Balsam Hill, an artificial Christmas tree company, projects a price increase of 10% to 15% compared to previous years. Most artificial Christmas trees are imported from China, where tariffs imposed during President Trump’s administration have significantly impacted costs.
Impact of Tariffs
- Increased customs fees due to tariffs
- Rising costs of component parts from U.S.-based suppliers
- Stable manufacturing costs but higher overall expenses
Harman notes that while manufacturing pre-lit trees in the U.S. is unlikely, given the complexity and skilled labor required, his company has diversified its manufacturing locations. This includes facilities in Mexico, Indonesia, and other Southeast Asian regions.
Strategies to Compete
To maintain competitive pricing, Balsam Hill has adopted various strategies. Harman has made workforce reductions, paused hiring, and frozen raises. He has also pre-ordered supplies to mitigate potential price hikes. His proactive measures allowed him to stock products ahead of predicted tariff increases.
Advice for Shoppers
With potential shortages looming, Harman advises consumers not to wait until the last minute. Retailers have reduced stock levels, heightening the risk of mid-December shortages. Shoppers should look for trees they love and consider purchasing them when on sale.
- Buy early to avoid shortages
- Don’t expect significant discounts as in previous years
- Consider purchasing if you find a sale
In summary, shoppers should be prepared for higher prices and reduced stock of artificial Christmas trees this season. The ongoing economic challenges mean that timely decisions may be crucial for those looking to celebrate the holidays with a festive tree.
