Tariffs Threaten the US Christmas-Decorations Industry

By Mark Niquette

August 21, 2025 - President Donald Trump’s tariffs are making it a blue Christmas for the US holiday decorations industry.

Because most artificial Christmas trees, lights and other decor are imported and typically shipped months in advance, businesses facing millions of dollars in unexpected duties said they canceled orders and laid off workers to be able to pay them, Bloomberg News reports today.

One Utah-based owner said he had to take a line a credit leveraged by his office and house to help cover the costs. Others expressed concerns about staying in business.

“This is a happy industry, and this is a pretty unhappy time to be in it,” said Jami Warner, executive director of the American Christmas Tree Association.

Balsam Hill, one of the leading companies in the holiday-decorations sector, holds an annual Christmas in July sale online and at its Burlingame, California, outlet. Dubbed “Holly Jolly July,” it’s akin to a month-long Black Friday with deals for early shoppers.

Sales didn’t do as well as expected in the US and were lower than last year’s, according to Mac Harman, founder and chief executive officer of parent company Balsam Brands. He said it could be a sign that customers are cautious.

US companies imported $3.4 billion in Christmas decorations last year, and 87% came from China, according to US Census Bureau data. Several owners said they tried to diversify their supply chain, mainly in Southeast Asia. But imports from these countries now face high tariffs, too. It’s uneconomical to make Christmas decorations domestically, they say.

The Christmas Trade Group representing small and medium-size firms has requested a tariff exemption, and there’s a precedent for some relief. In his first term, Trump delayed some duties on Chinese imports because of concerns about the holiday shopping season.