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Axios
03-08-2025
- Business
- Axios
The tariffs that stole Christmas
The Christmas business is typically pretty cheerful, but not this year: Companies that import and sell Christmas trees, twinkling lights and other holiday decorations say they've been hammered by tariffs. Why it matters: You'll likely pay more for holiday supplies, and have fewer products to choose from — industry leaders are even warning about possible shortages. "There's no question that it will be harder to find the exact tree and decor that that you want this year, and it'll be more expensive," says Jami Warner, executive director of the American Christmas Tree Association. Where it stands: Christmas executives (yes, that's a thing) have had to be real Scrooges since President Trump's "Liberation Day" tariffs. They've laid off workers, canceled or cut back imports, and raised prices to deal with higher import taxes — and they're still waiting to see where tariffs wind up. "It's like lack of sleep, absolute anxiety fest all the time — ulcers. I mean, it's just awful," says Jared Hendricks CEO of Village Lighting Company, which sells Christmas lighting and decorations. Hendricks says he has a loan of about $1 million, backed by his house, that he may need to tap to pay tariffs to bring product into the country. Shipments are still coming overseas, delayed after he canceled everything in the wake of the 145% tariff rate that was briefly in effect on China this spring. Catch up fast: The White House backed off triple-digit China tariffs, but they're still highat 30% — and could go higher yet. To afford these fees, companies are importing less. "Everyone is ordering less," says Dan Casterella, CEO of American Christmas, a holiday decorating business (they do Rockefeller Center and other major displays). "I'm getting emails weekly from factories in China with people who have canceled orders or companies that have gone out of business asking us to buy product," he says, noting that he has let go 20% of his full-time staff, about 100 people, to make up for tariff costs. By the numbers: Prices overall for Christmas decor could be 15 to 20% higher, according to interviews with executives in the industry and the American Christmas Tree Association. Certain items might be harder to find. "There are whole categories of trees that we may not have, or we have really small quantities of," says Mac Harman, founder of Balsam Hill, which primarily sells artificial trees. "Eventually, we'll get to a point where we may not have any trees." The intrigue: It's not totally clear that consumers will see all these price increases. The smaller importers say they're being pressured to absorb much of these costs. " Our big-box customers are telling us, 'we've promised that we're not going to raise prices, so you guys have to eat it,' " Hendricks says. Reality check: Plenty of folks have their ornaments and trees safely stored away for re-use every year. And beyond decor, stores will still be stocked with stuff you can buy for friends and family.


Business Wire
02-06-2025
- Business
- Business Wire
New Survey Reveals Consumer 'Yuletide Anxiety' Over Tariff Uncertainty
SACRAMENTO, Calif.--(BUSINESS WIRE)--A new national survey reveals that American consumers are increasingly anxious that tariffs on imported goods could dampen their holiday celebrations. The poll, conducted by Ipsos on behalf of the American Christmas Tree Association (ACTA) found that over half (61%) of respondents are concerned that tariffs will have an effect on Christmas — from the availability of decorations, toys and electronics to being able to afford the holiday season. Among the key findings: 57% are at least moderately to very concerned that tariffs will make the holidays more expensive this year, and more than three-quarters (77%) of Americans think rising prices could negatively impact this year's holiday season. Two-thirds of (68%) Americans believe essential holiday items will become unaffordable if tariffs lead to substantial price increases. If prices on holiday items increase due to tariffs, seven out of 10 shoppers (70%) say they will take some type of action, including cutting back on spending (46%), buying fewer decorations or gifts (41%), or switching to homemade or alternative gifts (22%). More than half of Americans (56%) agree the government should prioritize eliminating tariffs on essential holiday items to avoid price increases for shoppers. The commercial impact is particularly noticeable when respondents revealed their annual holiday budget with spending falling into the following ranges – under $250 (25%), $250-499 (24%), $500-999 (23%), 1000-1999 (18%), and over $2000 (7%). 'Holiday celebrations are deeply rooted in tradition, and for many families, artificial trees and imported decorations are central to that experience,' said Jami Warner, Executive Director of ACTA. 'This survey makes it clear that Americans are feeling the pinch — and they want to preserve the joy of the season without breaking the bank.' The findings come as policymakers consider extending or modifying tariffs on a broad range of consumer goods. The artificial Christmas tree industry, which relies heavily on overseas manufacturing, is among the sectors most directly impacted. 'We appreciate the Administration's actions to significantly lower the tariffs on Chinese imports, and we ask them to recognize the unintended consequences these tariffs have on the great majority of American families,' added Warner. 'Christmas should be a time of joy, not financial strain for consumers and the numerous small businesses that rely on holiday sales and face potential closure.' About the Survey: This poll was conducted by Ipsos from May 9 to May 11, 2025, using the probability-based KnowledgePanel®. This poll is based on a nationally representative probability sample of 1,019 adults age 18 or older. The margin of error is ±[3.3]% at the 95% confidence level. The American Christmas Tree Association (ACTA) is a non-profit organization that serves as a resource for media and consumers seeking information and education on the Christmas tree industry. For continued Christmas tree supply updates and industry news updates, visit or follow ACTA on LinkedIn, Instagram, Facebook, or X.