This holiday season, shoppers nationwide are feeling the pinch of higher prices on artificial Christmas trees as tariffs reshape the market. At the same time, real trees are seeing an unexpected surge in demand, prompting hardware stores to rethink their inventory strategies.
Tariffs drive up artificial tree costs
Small-town retailer Trio Hardware in Plainview opted out of ordering any artificial Christmas trees this year, citing steep import levies. “I can’t tell you the last time I ever sold out of a tree stand,” co-owner Todd Kirschner said, noting that real tree stand sales have soared. He attributed the shift to new tariffs that would have forced artificial tree prices so high that customers balked.
Nationwide, a 30% tariff on artificial trees imported from China—responsible for 87% of U.S. sales—has pushed retailers and suppliers to absorb as much cost as possible before passing the remainder to shoppers. “They had to pass some of the costs on [to consumers],” Jami Warner, executive director of the American Christmas Tree Association, said.
Warner added that the retail prices of artificial trees and other holiday décor are up 10% to 15% this year. A basic small tree now costs between $60 and $100, while a 6½- to 7-foot model runs $150 to $250. Pre-lit trees with realistic foliage and extra features fetch $250 to $500. Despite the tariff turmoil, artificial varieties still account for about 83% of U.S. Christmas tree purchases.
Retailers adapt; real trees climb in popularity
Preparation for the holiday season can begin well before tariffs take effect, explained Michael Costello, CEO of Farmingdale-based Costello’s Ace Hardware, which operates 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.
Faced with fluctuating levy rates, Costello’s scaled back its holiday orders and tapped U.S. warehouses for existing inventory to fill gaps. “The result this year is a smaller overall assortment, fewer new and innovative choices, and less inventory depth. This was the trade-off for keeping retail prices in check,” he said, noting a marked rise in tree stand sales as more customers opt for real trees.
Customers themselves are holding off on expensive artificial models. “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,” said Massapequa resident Julie Liebow, 63, whose family tree is a few years old. Merrick’s Georgia Nagy, 71, echoed that sentiment: “I had seen artificial trees and I had seen the prices. It’s outrageous,” Nagy said, adding she prefers real trees for their look and feel and may buy one if her grandchildren visit.
Most U.S. real Christmas trees are domestically grown, with Oregon leading production, according to Marsha Gray of the Real Christmas Tree Board. “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. A September survey of 43 wholesale growers representing at least half of the real tree market found that 84% do not plan to raise wholesale prices this year.
