Americans Lean Toward Artificial Christmas Trees Despite Price Hikes
As the holiday season approaches, many Americans are choosing artificial Christmas trees, even with potential price increases due to newly implemented tariffs, according to a report from the Associated Press.
The anticipated tariffs are expected to raise the cost of artificial trees by about 10% to 15% by 2025, as cited by data from the American Christmas Tree Association (ACTA). Some U.S. tree suppliers have had to reduce orders and adjust their tariffs on inventory sourced this year.
Interestingly, around 80% of Americans plan to set up a Christmas tree this year, with a large number opting for artificial varieties. Many now prefer these trees, even if they aren’t produced domestically.
Chris Butler, CEO of National Tree Co., pointed out, “Just because it says ‘Made in the USA’ on the box doesn’t make it enticing if it costs significantly more.” He emphasized that if the price goes up by 20%, people are less likely to purchase.
Moreover, certain companies in the artificial tree industry have begun relocating production to lessen their reliance on Chinese manufacturing.
Mac Herman, founder and CEO of Balsam Brands, which produces numerous Balsam Hill trees annually, noted that many individuals like to put up trees around Thanksgiving and keep them for several weeks, which can lead to drying out freshly cut trees. He also mentioned that some people are opting for artificial trees due to allergies to mold that can be found on real trees.
Herman reported that while his company’s sales in the U.S. fell by 5% to 10% this year, sales rose by over 10% in countries like Germany, Australia, Canada, and France—likely influenced by the tariffs.
A survey conducted for ACTA revealed that 61% of participants expressed concern about the negative effects tariffs might have on their holiday experience. Potential impacts include limited availability of decorations, toys, and electronics, or simply an inability to afford holiday shopping.
This year, U.S. consumers are increasingly expected to rely on credit card purchases. Estimates indicate about 158.9 million Americans plan to shop on the Saturday before Christmas, a slight increase compared to 2024.
However, some retailers are pulling back on hiring seasonal workers due to uncertainties stemming from President Trump’s tariffs. Business owners are reportedly worried that these tariffs could adversely affect their operations in the coming year.
Christmas tree prices this season are projected to be between $80 and $100, indicating rising costs for many consumers.
