Prices for artificial trees rose between 10% and 15% due to new taxes on imports. Fewer orders, more costs.
Import tariffs gave an unexpected (and unwanted by consumers) shine to artificial christmas trees this year, we USA — and exposed the country’s degree of dependence on foreign countries to supply the “plastic pine” market.
According to the American Christmas Tree Association, prices of artificial trees rose between 10% and 15% due to new taxes on imports.
Faced with rising costs, retailers and distributors reduced orders and paid more by the units they decided to bring to the country.
Despite tariff pressure, companies in the sector do not believe in a major transfer of production to the USA, after decades of relocation to the United States. Asia.
Making artificial trees is labor-intensive and relies on components — like lights and other accessories — that the U.S. no longer produces at scale, explains Chris Butler, CEO of National Tree Co..
Chris adds that North American consumers are particularly price-sensitive when it comes to holiday decor: a “Made in the USA” label helps little or nothing if the product becomes substantially more expensive.
Nearly 80% of U.S. residents who put up a Christmas tree this year planned to use one artificial tree. It is a preference that has lasted for at least 15 years and is associated with habits and convenience: many families set up the tree on Thanksgiving Day (end of November) and leave it up for weeks, which accelerates the drying out of natural trees; others avoid natural trees due to allergies.
Additionally, the vast majority of artificial trees come with lights pre-installed, a deciding factor for many consumers.
With weaker demand, companies like National Tree Co. imported less and raised prices by around 10%, using part of the margins for discounts.
