URGENT UPDATE: Consumers planning to buy an artificial Christmas tree this year should act NOW, as prices are set to increase by 10-15% due to tariffs on imports from China and ongoing supply chain challenges. Mac Harman, CEO of Balsam Hill, a leading artificial tree manufacturer, warns that shoppers may face significant price hikes if they delay their purchases.
With 83% of households expected to display an artificial Christmas tree this year, holiday cheer is already impacted by economic pressures. Harman emphasizes that the price increases are unavoidable, stating, “Whatever price point you might have been looking at last year, expect that to be about 10-15% more this year.” This inflation is largely driven by tariffs imposed by the U.S. government, which have increased the costs vendors pay to U.S. customs.
The manufacturing of pre-lit trees presents unique challenges for domestic production. Harman explains, “The interesting thing about pre-lit artificial Christmas trees is they’ve never been made in the U.S.” The intricate process of attaching lights by hand has discouraged American workers from taking on such labor-intensive jobs, making a shift to domestic manufacturing unlikely.
The ripple effects of tariffs extend beyond Balsam Hill. Many suppliers in the Christmas industry are also grappling with rising component costs. Harman notes, “The prices have gone up no matter if we make something here or if we make it in other places.” To mitigate these increases, Balsam Hill has implemented various strategies, including workforce reductions and diversifying supply chains to include manufacturing in Mexico and Indonesia.
As the holiday season approaches, Harman advises consumers to prioritize their tree purchases. “Look for a tree that you love, and if it’s on some kind of sale, buy it,” he urges. With some retailers ordering less stock due to anticipated price increases, shoppers risk facing shortages as December approaches. Harman cautions against waiting for potential discounts, stating, “Seeing if you might get 10% off if you wait two weeks, I don’t think that’s going to work as well this year as it might in a normal year.”
The situation remains fluid, as prices and availability are subject to change based on economic conditions and tariff adjustments. If you’re in the market for an artificial Christmas tree, now is the time to make your move before prices surge even more.
Stay tuned for further updates as the holiday season unfolds and economic factors continue to evolve.
