If you’re planning on buying a new Christmas tree, wreath, strands of lights, or any other holiday decor this year, you may want to start shopping for them now. According to industry insiders, tariffs are impacting the amount of Christmas decorations being imported as well as their prices this year, which may lead to shortages as the holiday season approaches.
How Tariffs Are Affecting the Holiday Decor Industry
Tariffs implemented by President Trump are having a huge impact on the holiday decor industry this year, according to Chris Butler, CEO of National Tree Company, in an interview with CNBC. About 87% of all artificial Christmas trees are made in China, and his company is one of the nation’s largest importers of the product.
Because of the trade wars, holiday decor companies have faced millions in unexpected duties and canceled orders, according to the American Christmas Tree Association. “This is a happy industry, and this is a pretty unhappy time to be in it,” said Jami Warner, executive director.
Imports of Holiday Decor Are Way Down
July, August, and September are generally the months when the most holiday decor is imported from China. But this year, August imports were down 58% year over year, and September imports were down a whopping 70% compared to last year, according to William George, director of research for ImportGenius. Consumer demand is lower, and orders from retailers and hardware stores that typically sell holiday items have decreased significantly.
Shop Early, Industry Warns
Even though consumer demand is down due to tightening wallets, industry experts advise you to shop early for the best selection of holiday decor. There will be fewer products to go around, so if you have your eye on something specific, don’t wait until the last minute — Black Friday weekend is usually when holiday decor shopping peaks — to get it. “I would get ahead of that,” said Butler. “So buy now, buy early is what I would say to consumers.”
Prices Will Be Higher Than Usual
It’s a common refrain lately, but expect holiday decor prices to be higher this year. Prices at National Tree Company have been raised by 10% across the board this year due to the trade war, according to Butler. “I think most consumers will be able to weather the 10% price increase,” he said, “ but consumers at the lower end of the economic spectrum may struggle.”
More Retail News From Cheapism
- Spirit Halloween Expanding ‘Spirit Christmas’ to 30 Stores This Season — Spirit Halloween is tripling the number of Spirit Christmas stores this year, bringing holiday decor, gifts, and festive experiences to more shoppers.
- Toys ‘R’ Us Is Making a Comeback with New Stores. Here’s Where — Iconic toy store Toys ‘R’ Us is making a grand comeback just in time for the holiday season. Here’s what shoppers need to know.
- 15 Ways to Save on Christmas This Year — If you’re sick of being stuck with a huge credit card bill after the holidays, there are ways you can spend less this Christmas.
