Latest news with #holidaydecor
Yahoo
15 hours ago
- Business
- Yahoo
Fewer fake firs, higher prices: China tariff delay does little to save the holidays
By Jessica DiNapoli, Casey Hall and Siddharth Cavale NEW YORK/SHANGHAI (Reuters) -U.S. shoppers looking for fake Christmas trees and holiday decor this year will have fewer choices and face higher prices as tariffs on Chinese imports force retailers to scale back orders as they assess how tight customer budgets are. A 90-day extension to a tariff reprieve - agreed to by Washington and Beijing on August 11 - will allow retailers to rush in some last-minute shipments, but most holiday purchases are already done. Retailers typically import seasonal goods in advance because many products need six-month lead times. "We're going to have a lower supply year," said Chris Butler, CEO of National Tree Company, a New Jersey-based artificial tree importer supplying Walmart, Home Depot, Lowe's and Amazon. The company, which sources roughly half its trees from China and the rest from Vietnam, Cambodia, and Thailand, will hike prices by 10% to 20% on its Carolina pine, Nordic spruce, and Dunhill fir trees, Butler said. China is the biggest exporter of Christmas decorations to the U.S., accounting for 87% of such imports last year, worth roughly $4 billion, according to United States International Trade Commission data. "We're not overbuying (from our suppliers) because we're not sure about consumer demand and don't want expensive inventory on our books," Butler said. Big retailers are more keen than usual to have National Tree ship directly to consumers rather than buying them as inventory, reducing the stores' risk on their balance sheets. Butler's rival, Mac Harman, CEO of California-based Balsam Hill, expects about 15% fewer trees in the market this season. "Even with the extended 90 days, it's too late for any of us to add orders," he said. Retailers started cutting orders after U.S. President Donald Trump flip-flopped on China tariffs - raising them to 145% in April, then cutting them to 30% a month later - because they are unwilling to buy trees at elevated prices, said Harman. He sources trees from around 80 suppliers, half of which are in China. Still, the latest pause has netted Balsam Hill some $2.5 million in savings, he said. A Walmart spokesperson said the company was confident in its inventory position heading into the holiday. Home Depot and Amazon declined to comment, while Lowe's did not respond to a Reuters request for comment. 'STILL TOO MUCH' The reduced demand for fake trees, a key Christmas purchase, signals a muted shopping season. Higher prices on essentials like diapers and dish soap have already strained budgets. Denim maker Levi Strauss said last month it will offer a leaner holiday selection. Isaac Larian, CEO of MGA Entertainment that makes Bratz dolls, said a 30% tariff on toys "is still too much." The company has raised prices, he said. Only goods shipped by air would benefit from the delay in higher tariffs, said Chris Rogers, head of supply chain research, S&P Global Market Intelligence. Companies including Apple that have upcoming product launches will gain from the certainty that there will be a 30% tariff, he said. Some suppliers, shippers, and retailers, however, started rushing extra orders after the moratorium was announced, industry sources said. While most footwear makers simplified holiday orders due to tariff uncertainty, a few are placing new orders to add variety to their inventory, said Matt Priest, CEO of industry group Footwear Distributors and Retailers of America (FDRA). It may not be simple to ramp up orders, though. Imports face manufacturing bottlenecks as brands that diversified to other countries after initial tariffs now face delays before new manufacturers can scale up, said Dave Tu, president of DCL Logistics, which imports for clients like GoPro. By and large, this tariff extension changes little for holiday imports. For most companies, said FDRA's Priest, holiday inventory "is what it is."
Reuters
15 hours ago
- Business
- Reuters
Fewer fake firs, higher prices: China tariff delay does little to save the holidays
NEW YORK/SHANGHAI, Aug 18 (Reuters) - U.S. shoppers looking for fake Christmas trees and holiday decor this year will have fewer choices and face higher prices as tariffs on Chinese imports force retailers to scale back orders as they assess how tight customer budgets are. A 90-day extension to a tariff reprieve - agreed to by Washington and Beijing on August 11 - will allow retailers to rush in some last-minute shipments, but most holiday purchases are already done. Retailers typically import seasonal goods in advance because many products need six-month lead times. "We're going to have a lower supply year," said Chris Butler, CEO of National Tree Company, a New Jersey-based artificial tree importer supplying Walmart (WMT.N), opens new tab, Home Depot (HD.N), opens new tab, Lowe's (LOW.N), opens new tab and Amazon (AMZN.O), opens new tab. The company, which sources roughly half its trees from China and the rest from Vietnam, Cambodia, and Thailand, will hike prices by 10% to 20% on its Carolina pine, Nordic spruce, and Dunhill fir trees, Butler said. China is the biggest exporter of Christmas decorations to the U.S., accounting for 87% of such imports last year, worth roughly $4 billion, according to United States International Trade Commission data. "We're not overbuying (from our suppliers) because we're not sure about consumer demand and don't want expensive inventory on our books," Butler said. Big retailers are more keen than usual to have National Tree ship directly to consumers rather than buying them as inventory, reducing the stores' risk on their balance sheets. Butler's rival, Mac Harman, CEO of California-based Balsam Hill, expects about 15% fewer trees in the market this season. "Even with the extended 90 days, it's too late for any of us to add orders," he said. Retailers started cutting orders after U.S. President Donald Trump flip-flopped on China tariffs - raising them to 145% in April, then cutting them to 30% a month later - because they are unwilling to buy trees at elevated prices, said Harman. He sources trees from around 80 suppliers, half of which are in China. Still, the latest pause has netted Balsam Hill some $2.5 million in savings, he said. A Walmart spokesperson said the company was confident in its inventory position heading into the holiday. Home Depot and Amazon declined to comment, while Lowe's did not respond to a Reuters request for comment. The reduced demand for fake trees, a key Christmas purchase, signals a muted shopping season. Higher prices on essentials like diapers and dish soap have already strained budgets. Denim maker Levi Strauss (LEVI.N), opens new tab said last month it will offer a leaner holiday selection. Isaac Larian, CEO of MGA Entertainment that makes Bratz dolls, said a 30% tariff on toys "is still too much." The company has raised prices, he said. Only goods shipped by air would benefit from the delay in higher tariffs, said Chris Rogers, head of supply chain research, S&P Global Market Intelligence. Companies including Apple (AAPL.O), opens new tab that have upcoming product launches will gain from the certainty that there will be a 30% tariff, he said. Some suppliers, shippers, and retailers, however, started rushing extra orders after the moratorium was announced, industry sources said. While most footwear makers simplified holiday orders due to tariff uncertainty, a few are placing new orders to add variety to their inventory, said Matt Priest, CEO of industry group Footwear Distributors and Retailers of America (FDRA). It may not be simple to ramp up orders, though. Imports face manufacturing bottlenecks as brands that diversified to other countries after initial tariffs now face delays before new manufacturers can scale up, said Dave Tu, president of DCL Logistics, which imports for clients like GoPro(GPRO.O), opens new tab. By and large, this tariff extension changes little for holiday imports. For most companies, said FDRA's Priest, holiday inventory "is what it is."
CBS News
02-08-2025
- Business
- CBS News
Arlington's Decorators Warehouse braces for impact amid rising import costs
As new U.S. tariffs are set to take effect next week — raising rates as high as 40% for dozens of trading partners — small businesses across Texas are preparing for the fallout. Among them is Decorators Warehouse, a long-running holiday décor destination in Arlington. Inside the store, customers are greeted by an explosion of ornaments, wreaths, and festive displays. "It's fabulous. I'm like a kid in a candy store," one shopper said, echoing the sentiment of many who visit the store year-round. But behind the sparkle and cheer, owner David Hanson is facing a growing challenge. "The uncertainty around that has been very, very hard," Hanson told CBS News Texas. He said tariffs touch every corner of his business, which sources nearly all of its products from overseas. "Almost all of it comes from every country in the world," Hanson said. "We get it out of the Far East, we get it out of Europe, comes out of the Philippines, China—you name it." The financial impact is already being felt. "This container of lights cost me $150,000. Now I add a 30% tariff to that—I'm immediately paying $45,000 more than I ever paid," Hanson explained. "I hear it all the time: 'Well, I'm not paying the tariffs, China is.' They are not paying the tariff. I am paying the tariff. As soon as it hits the United States, I pay the tariff." Hanson said the burden doesn't stop with business owners. "You do. I do. Our families do," Hanson said. "And there's no way around that. At some point, you simply can't eat it all." Carletta Wilson, a designer from Arkansas and a frequent customer, said the uncertainty is affecting more than just retailers. "This is my happy place. This is where I spend hours," she said. Wilson worries about the broader economic impact. "The thing that's going to be extra devastating is the job loss that's happening all over," she said. "If customers cannot afford our items, no matter how much we price them at, that's where it's going to be devastating even more to all of us." "As the tariffs increase, our costs increase. People are losing their jobs. It's going to be a choice whether to pick it up or not. Because people are worried." To get ahead of the uncertainty, Hanson placed orders for this year's holiday season last September. For now, he said, Decorators Warehouse will not pass along tariff-related price hikes to customers. "We have people that are nervous. They're a little uncertain," Hanson said. "We're here to help them have a good year. So that's our approach to everything." Still, Hanson knows the relief may be temporary. "I deal with the uncertainty to give you the holiday cheer," he said. "That's a good way to put it. I like that a lot."
