The cost of holiday cheer is climbing

Shoppers looking to decorate their homes this holiday season may find a surprise or two on the shelves, and none of them involve voyeuristic elves.

Certain holiday decorations are projected to be significantly more expensive this year, largely due to new tariffs on imported goods, according to several recent industry reports.

• Artificial trees are projected to cost up to 20% more on average than last year.
• Prices for holiday lights could also jump as much as 63%.

Why costs are nudging north: Some 90% of mass market holiday décor is manufactured in China, which has faced elevated US tariff rates this year under the Trump administration (between 30%-145%).

Industry experts say it’s unrealistic for production of these goods to shift back to the US in the short term, since items like pre-lit trees rely on specialized machinery and large-scale factories that domestic manufacturers don’t currently have.

But…There are some holiday bright spots. Shoppers who go the “fresh pine smell” route are in luck, with the vast majority of wholesale holiday tree growers (84%) saying they don’t plan to increase prices this year, per the Real Christmas Tree Board.

Big picture: Even with the potential price bumps, US consumers are still gearing up for a major season. Overall holiday spending is projected to top $1 trillion for the first time ever in 2025, at an average of $890.49/shopper.