Tariffs Prompt Shift from Artificial to Real Christmas Trees
This holiday season, high levies on imported artificial trees have reshaped consumer buying patterns, leading many shoppers to lean toward real evergreens. Small retailers, wary of passing steep cost increases to their customers, have scaled back or even skipped artificial tree orders entirely.
At Trio Hardware in Plainview, co-owner Todd Kirschner opted not to stock any artificial trees for the first time in years. “I can’t tell you the last time I ever sold out of a tree stand,” Kirschner said, noting an unexpected surge in demand for real-tree stands.
Rising Prices and Reduced Selections
Retailers and industry experts report that artificial trees and holiday décor have climbed 10% to 15% in price this year, according to Jami Warner, executive director of the American Christmas Tree Association. Basic small trees now range from about $60 to $100, while standard 6½- or 7-foot models cost $150 to $250. Premium pre-lit options with lifelike foliage can fetch between $250 and $500.
China supplies roughly 87% of the artificial trees sold in the U.S., and a newly imposed 30% tariff on these imports has driven up costs. “They had to pass some of the costs on [to consumers],” Warner said. “Otherwise, they would have completely gone out of business.”
Uncertainty over future tariff rates has also trimmed store inventories. Michael Costello, CEO of the 62-store Costello’s Ace Hardware chain, explained that holiday orders placed in January only incur duties when products arrive months later. “The unpredictability of exactly how much tariffs would impact cost created uncertainty,” he said, adding that the chain has tapped existing domestic warehouse stock to fill gaps.
“The result this year is a smaller overall assortment, fewer new and innovative choices, and less inventory depth. This was the trade-off for keeping retail prices in check,” Costello said. Meanwhile, sales of real-tree stands at his stores have climbed significantly.
Consumer Reactions
Many shoppers with older artificial trees are choosing to reuse them rather than face current prices. “I feel like I’m at the point now where I’d probably rather wait to the end of the season and buy one on sale than pay for a new one right now,” said Julie Liebow of Massapequa, whose family’s tree is still serviceable.
Others are making a permanent switch. “I had seen artificial trees and I had seen the prices. It’s outrageous,” said Georgia Nagy of Merrick, who may buy a real tree this year for her grandchildren. She noted she prefers the look and feel of real evergreens regardless of price.
Outlook for Real Trees
Real trees remain plentiful, with most sold in the U.S. grown domestically—Oregon leads production. Marsha Gray, executive director of the Real Christmas Tree Board, said it’s too early to quantify any surge in real-tree sales tied to tariffs, but growers are prepared for a strong season. According to the board’s annual September survey of 43 wholesale growers—covering at least half of the U.S. market—84% do not plan to raise wholesale prices this year.
