The ongoing Chinese import tariffs create supply chain disruptions which will result in reduced selection and elevated prices for Christmas trees and decorations that U.S. shoppers will encounter this holiday season.
Retailers secured a 90-day extension on tariff relief after Washington and Beijing struck a temporary deal on Aug. 11, but most holiday orders had already been placed months earlier.The production of seasonal goods requires a six-month lead time.
“We’re going to have a lower supply year,” said Chris Butler, CEO of National Tree Company, which sells to Walmart, Home Depot, Lowe’s and Amazon.The company which imports half of its products from China has implemented a 10% to 20% price increase for trees.
The United States imported 87% of its holiday decorations from China during the previous year at a total value of almost $4 billion based on government trade statistics. Balsam Hill along with other competitors anticipate a 15% decrease in tree availability for this year despite the temporary reprieve.
The President Donald Trump’s changing tariff policies which started with a 145% duty increase in April followed by a 30% duty reduction in May led retailers to reduce their orders because they did not want to pay more than necessary. The current price freeze benefits some businesses but shoppers will probably encounter elevated costs together with reduced product availability during December.
