The holidays often bring with them snowy backdrops, holiday lights, and family gatherings. This year, however, expect prices for gifts, decorations and trees to rise as the full brunt of the Trump administration’s tariffs approaches Christmas. LendingTree analysis shows that if Trump implemented tariffs, U.S. consumers would have spent an additional $132 per person on holiday gifts last year. The biggest burden was on consumer electronics, which saw a price increase of $186 per shopper, followed by apparel and accessories, which saw a price increase of $82.
“For most Americans, spending an extra $132 during the holidays is a significant expense,” Matt Schulz, chief consumer finance analyst at LendingTree, said in a statement. “This could prompt people to give fewer gifts this year or cause them to take on additional debt.”
Consumers are also expected to spend heavily on non-holiday gifts. A recent survey by the National Retail Federation showed that shoppers are likely to spend about $262 on seasonal items such as decorations and greeting cards, with 85% of respondents saying they expect costs to be higher this year due to tariffs.
Christmas tree prices rise
How can Christmas be without a Christmas tree? As prices rise, some Americans may find that out. According to the American Christmas Tree Association (ACTA), artificial Christmas trees are mostly imported from China and prices are expected to rise 10% to 15% this year. Manufacturers are absorbing and passing on tariff costs, and the current average tariff cost for imported products from China is 47.5%.
China is also the main source of holiday decorations in the United States and will provide 88% of Christmas decoration products by 2023, according to U.S. Census data. ACTA noted that this means even those opting for farm-grown Christmas trees will face higher prices for items such as lights, some of which are now subject to tariffs of up to 67%.
“Christmas tree and ornament suppliers and retailers have done their best to cope with the unpredictability and roller coaster ride of the tariff situation,” ACTA executive director Jami Warner told the Observer via email. “To protect consumers, they absorbed as much of the tariffs as they could, but many had to pass on some unexpected costs.”
Real Christmas trees, mostly grown domestically, remain a rare highlight. About 84% of wholesale growers do not plan to raise prices this year, according to a survey by the Real Christmas Tree Board, which found many producers are taking the price pressure on themselves. Although a small percentage of trees are imported from Canada, these imports are exempt from tariffs under the United States-Mexico-Canada Agreement because they are classified as agricultural products.
While vacations may get more expensive, they won’t derail you. Consumers are still expected to spend a lot of money on gifts: November and December retail sales could top $1 trillion for the first time, according to the National Retail Federation.
“I suspect electronics and clothing gifts will be down significantly this year because they are things that a lot of people want,” Schultz said, adding that tariff-driven increases could result in families “having to incur higher costs” to buy the gifts they want for their loved ones.
Artificial trees show no signs of losing their status, either. ACTA noted that they remain the first choice for four out of five American families celebrating Christmas. “The costs may be a little higher this season and inventory may be a little lower, but everyone will have a perfect Christmas tree,” Warner said.
