Christmas tree prices rise, selections shrink, due to tariffs

Trio Hardware in Plainview didn’t even bother ordering artificial Christmas trees to sell in the store or online this year.

Tariffs on imports of seasonal merchandise would have led the retailer to raise its retail prices high enough to turn off consumers from buying them, so the 62-year-old store nixed its usual holiday orders this year, co-owner Todd Kirschner said.

But what has surprised him, Kirschner added, is that Trio Hardware sold out of stands for real Christmas trees this year. It's an indication that a growing number of consumers are buying real trees instead of the pricier artificial versions, he said.

"I can’t tell you the last time I ever sold out of a tree stand," Kirschner said.

Tariffs hit trees

President Donald Trump's tariffs on imports of artificial Christmas trees that went into effect this year have led to higher retail prices and more consumers reusing ones previously purchased or buying real trees, which generally are cheaper, retailers said.

There is also less selection in stores because some retailers decreased the amount of seasonal inventory they ordered this year because of the tariffs, retailers and tree industry experts said.

The retail costs of artificial trees and other holiday décor have increased by 10% to 15% this year, said Jami Warner, executive director of the American Christmas Tree Association, a trade group that represents suppliers and retailers of artificial Christmas trees and holiday décor.

The price of a small, basic artificial tree will range from about $60 to $100 this year, while a standard artificial tree, at 6½ or 7 feet tall, will be $150 to $250, she said.

A pre-lit artificial tree with realistic foliage, fullness or extra features will run from $250 to $500, Warner said.

Most of the Christmas trees Americans purchase — 83% — are artificial, she said.

Absorbing some of costs

There is now a 30% tariff on imports of artificial Christmas trees from China, which accounts for 87% of the artificial trees sold in the United States, according to Warner.

Suppliers and retailers of artificial trees absorbed as much of the tariff expenses as they could, she said.

"They had to pass some of the costs on [to consumers]," she added. "Otherwise, they would have completely gone out of business."

But there isn’t a shortage of Christmas trees, Warner said.

"There is slightly less inventory because retailers, they try to keep up with the roller coaster, the tariff roller coaster," by ordering less product because the levy rates changed multiple times this year, she said

Costello’s Ace Hardware orders holiday merchandise in January but tariffs are not applied until the products arrive months later, said Michael Costello, chief executive officer of the Farmingdale-based chain of 62 stores, including 25 on Long Island.

"Meaning that when a buyer commits to orders, they are required to predict what the tariff rate will actually be months into the future. The unpredictability of exactly how much tariffs would impact cost created uncertainty," he said.

Reduced holiday orders

Costello’s reduced its orders of holiday products this year, and contacted its manufacturing and distribution partners to buy Christmas trees and other holiday items that they already had in U.S. warehouses to fill in some of the merchandise gaps, Costello said.

"The result this year is a smaller overall assortment, fewer new and innovative choices, and less inventory depth. This was the tradeoff for keeping retail prices in check," said Costello, who added that the chain’s sales of tree stands for real trees are up significantly this year.

Massapequa resident Julie Liebow bought décor and lights in Costello’s Bellmore store Saturday.

Her family's artificial tree is a few years old and looking a little worn but not enough to warrant buying a new artificial tree at today’s prices, said Liebow, 63.

"I feel like I’m at the point now where I’d probably rather wait to the end of the season and buy one on sale than pay for a new one right now," she said.

Merrick resident Georgia Nagy, 71, was in Costello’s Bellmore store Saturday looking at holiday ornaments and a nativity set.

She has an artificial tree at home that is about 10 years old, she said. This year, she might replace it with a real tree if her grandchildren visit for Christmas, Nagy said.

"I had seen artificial trees and I had seen the prices. It’s outrageous," Nagy said, adding that she will buy only real trees in the future because she prefers their look and feel, not because they’re cheaper than artificial trees.

'My industry is hopeful'

Most real Christmas trees sold in the United States are grown here, with Oregon being the top-producing state, said Marsha Gray, executive director of the Real Christmas Tree Board, a Michigan-based promotional group funded by Christmas tree growers in North America.

It’s too soon to know whether there will be a huge surge in sales of real trees due to the tariffs on artificial trees, she said.

"I think a lot of my industry is hopeful that they see that ... but until the numbers are really crunched, it’s hard to know. But I think our industry is prepared for a strong season," she said.

But wholesale tree growers have indicated that they don’t intend to raise prices this year.

A survey of 43 wholesale growers, representing at least half the U.S.’ real Christmas tree market, found that 84% do not plan to raise wholesale prices for the upcoming season, according to the Real Christmas Tree Board's annual survey released in September.