A Word of Warning to Artificial Tree Shoppers

Holiday cheer may come with a bigger price tag this season. NBC News reports that tariffs are expected to drive up the cost of artificial Christmas trees by 10% to 20%, while the price of Christmas lights could soar as much as 63% compared to last year, according to major U.S. importers.

The main reason: nearly all mass-market Christmas decorations are produced overseas—most in China. That’s not likely to change anytime soon, says Mac Harman, CEO of Balsam Hill, one of the country’s leading artificial tree makers.

Harman estimates that an $800 tree made in China would cost around $3,000 if produced in the U.S., due to higher labor and capital expenses. Relocating production isn’t a realistic option, either. “There’s a ton of capital that’s invested in these factories,” Harman explains. “The equipment’s so big you can’t even pick it up and put it on a container ship and transport it.”

He adds that most customers prefer pre-lit trees, and much of the intricate light-stringing process is still done by hand. “The people in China who do this are experts—they’ve been doing it for years, they’re fast, and they’re very good at it,” Harman says.

One bright spot: live Christmas trees aren’t expected to see price hikes, as most are grown domestically or imported tariff-free from Canada.

For those sticking with artificial trees, The New York Times’ Wirecutter has released its annual recommendations, with a Balsam Hill model once again earning the top spot.

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