Tariffs Drive Up Artificial Tree Prices, Boosting Real Tree Sales

Shoppers hunting for holiday greenery are finding fresh-cut pines more appealing as costs for faux foliage climb. Import tariffs on artificial Christmas trees have prompted some hardware stores to forgo stocking the plastic versions altogether while real trees see renewed demand.

Plainview’s Trio Hardware, a family-owned business operating for over six decades, chose not to place orders for artificial trees this year. “I can’t tell you the last time I ever sold out of a tree stand,” said co-owner Todd Kirschner, noting that real-tree accessories flew off the shelves even as plastic alternatives sat on the sidelines.

Tariffs Drive Up Artificial Tree Prices

Beginning this year, a 30% tariff on artificial trees imported from China—home to 87% of the U.S. artificial tree supply—has pushed up retail prices by an estimated 10% to 15%. Jami Warner, executive director of the American Christmas Tree Association, reported that a small unadorned tree now costs between $60 and $100, a 6½- to 7-foot standard tree runs $150 to $250, and premium pre-lit models fall in the $250 to $500 range.

Suppliers and retailers have absorbed a portion of the new fees. “They had to pass some of the costs on [to consumers],” Warner said. “Otherwise, they would have completely gone out of business.”

With many households holding onto their current artificial trees longer, Warner added, “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.

Inventory Adjustments by Retailers

Costello’s Ace Hardware, headquartered in Farmingdale with 62 locations including 25 on Long Island, places its holiday orders as early as January. Michael Costello, the chain’s CEO, explained, “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.”

To balance selection and price, Costello’s reduced its seasonal assortment and tapped into U.S. warehouse stock from manufacturing partners. “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. Meanwhile, sales of real-tree stands have climbed significantly.

Consumer Reactions

Many shoppers are postponing the purchase of a new artificial tree in hopes of end-of-season discounts. “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, who visited the Bellmore store to buy decorations and lights.

Merrick’s Georgia Nagy, whose current artificial tree is about a decade old, is leaning toward a real tree this year if her grandchildren visit. “I had seen artificial trees and I had seen the prices. It’s outrageous,” she said, noting she prefers the look and feel of live trees regardless of cost.

Outlook for Fresh Trees

Most real Christmas trees in the U.S. are homegrown, with Oregon leading national production. Marsha Gray of the Real Christmas Tree Board said it is too early to determine whether tariffs will trigger a major sales uptick but added, “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.

Despite potential demand increases, a September survey of 43 wholesale growers—representing more than half of the U.S. market—found that 84% do not plan to raise their prices for the upcoming season.