Expect Price Increases on Christmas Decor This Year, Thanks to Tariffs
Christmas celebrations in 2025 are set to become more expensive for American consumers. Rising tariffs on imported goods, particularly those from China, are driving up the costs of holiday decorations. With the U.S. relying heavily on Chinese manufacturers for 87% of its Christmas decor, the impact is expected to be significant.
The tariffs, which have reached up to 30% and could climb higher, are forcing retailers to hike prices. Major brands like Hallmark have already increased ornament prices by 25%. Artificial Christmas trees and specialty ornaments may even double in price compared to last year.
The situation is worsening as U.S. importers reduce or cancel orders due to higher costs. This could lead to scarcity, with fewer varieties and quantities available to consumers. The holiday decor industry, which heavily depends on Chinese manufacturing, is bracing for a challenging season.
Companies like American Christmas, known for iconic displays like Rockefeller Center’s, are feeling the strain. They’ve cut staff by about 20% to offset tariff costs and are experiencing decreased business with suppliers. Many Chinese manufacturers are also suffering, with eight out of ten contracts canceled this year despite offering discounts.
Large retailers are pushing wholesalers and importers to absorb as much of the price increases as possible to avoid passing the costs directly to shoppers. However, smaller businesses, with fewer resources, are more likely to raise prices or reduce orders, increasing the risk of supply shortages.
Consumers are already expressing concern. A June 2025 Ipsos survey found that 57% of shoppers worry that tariffs will make Christmas more expensive, with two-thirds fearing key holiday items will become unaffordable. In response, about 70% of consumers plan to cut back by spending less, buying fewer decorations, or opting for alternative gift options.
While Halloween and Christmas will be the hardest hit due to their reliance on Chinese imports, other holidays like Thanksgiving, which focuses on food, are less affected. However, some consumers may be insulated from these increases if they reuse existing decorations rather than purchasing new ones.
Industry leaders warn that if tariffs persist or increase further, supply chain disruptions may worsen, leading to even higher costs and reduced product availability for future holiday seasons. This situation has sparked widespread concern among both U.S. consumers and Asian manufacturers, with pressure mounting on government officials to address tariffs impacting essential holiday items.
As the financial obstacles grow, businesses and shoppers alike are reassessing how they approach holiday preparation. For many, the traditional festive season may look very different in 2025.
Deeper Impact on Specific Products and Consumer Adaptation
The tariffs are having a varied impact across different types of Christmas decorations. Artificial Christmas trees and specialty ornaments are particularly affected, with prices expected to double in some cases. This significant increase is attributed to the higher tariffs and reduced import volumes, making these items scarce and more expensive for consumers.
Smaller businesses are facing unique challenges as they struggle to absorb the increased costs. Unlike larger retailers, these businesses often lack the resources to negotiate better prices with suppliers or absorb tariff-related expenses. As a result, many are forced to raise prices or reduce their product offerings, which could lead to a more limited selection for consumers during the holiday season.
Consumers are adapting to the price hikes in creative ways. While many plan to cut back on spending, others are exploring alternative strategies such as DIY decorations or purchasing second-hand items. This shift reflects a broader trend towards cost-effective and sustainable holiday practices, as consumers seek to maintain their festive traditions without overspending.
Rising shipping costs are compounding the financial strain on the industry. These increased logistics expenses are contributing to the overall price hikes, making it even more challenging for retailers to keep prices competitive. The combination of higher tariffs and shipping costs is creating a perfect storm that affects both retailers and consumers alike.
Looking ahead, there are concerns that if tariffs remain in place or increase, supply chain disruptions could worsen. This might lead to even higher prices and fewer product options in future holiday seasons, potentially altering the landscape of the holiday decor industry for years to come.
As the situation unfolds, there is growing pressure on government officials to address the tariffs impacting holiday items. The potential consequences of inaction could include prolonged economic strain on both manufacturers and consumers, underscoring the need for a prompt resolution to mitigate further disruptions.
Conclusion
The rising tariffs on imported Christmas decorations are set to make the 2025 holiday season significantly more expensive for American consumers. With the U.S. relying heavily on China for 87% of its holiday decor, the 30% tariffs have already led to price hikes of up to 25% for ornaments and potential doubling of costs for artificial trees. Smaller businesses and consumers are bearing the brunt of these increases, with many forced to reduce spending or seek alternative decorations. The situation is further complicated by reduced import volumes and supply chain disruptions, which may lead to scarcity and limited product variety. As the holiday decor industry braces for a challenging season, there is growing pressure on government officials to address the tariffs and mitigate their impact on both businesses and consumers. The traditional festive season may look very different in 2025, with many rethinking their holiday traditions and preparation strategies.
Frequently Asked Questions
Which Christmas decorations will be most affected by the tariffs?
Artificial Christmas trees and specialty ornaments are expected to see the highest price increases, with some prices potentially doubling due to the tariffs and reduced import volumes.
Why are Christmas decoration prices increasing?
Prices are rising due to tariffs of up to 30% on imported goods, particularly from China. These tariffs are forcing retailers to increase prices, with brands like Hallmark already raising ornament prices by 25%.
How are smaller businesses handling the tariff increases?
Smaller businesses are struggling to absorb the increased costs and are often forced to raise prices or reduce their product offerings, which may lead to a more limited selection for consumers.
How are consumers adapting to the price increases?
Consumers are adapting by cutting back on spending, buying fewer decorations, or opting for DIY and second-hand items. Many are also exploring alternative gift options to reduce expenses.
What is the long-term impact of these tariffs on holiday decorations?
If tariffs persist or increase, supply chain disruptions may worsen, leading to even higher prices and reduced product availability in future holiday seasons. This could permanently alter the holiday decor industry.