Holiday decorations may cost more this year. Here’s why.

As people begin to deck the halls with twinkling rooftop lights, ornaments and chimney stockings, industry experts are weighing in on the impact of tariffs.

“The tariffs have significantly affected our business,” Chris Butler, CEO of National Tree Co. in Cranford, New Jersey, told Homes.com.

“They’ve added cost to our products, and we’ve had to raise prices accordingly by about 10% this year.”

Jami Warner, executive director of the American Christmas Tree Association, said most holiday decorations are imported, and nearly all of that decor comes into the United States with tariffs of 30% or higher.

“Many were not tariffed until recently,” Warner said.

The White House said in a Nov. 4 statement that global reciprocal tariffs are necessary to "address the national emergency posed by our large and persistent trade deficits."

Consumers should expect roughly a 10% price increase for many standard holiday decor items this year, said Butler, whose company specializes in artificial Christmas trees and other holiday decor. In certain categories, like premium trees or imported lines, the increase may be higher, as much as 20%, he said.

Additionally, Warner said, major retailers have cut back purchases by 15% to 20%, likely leading to less inventory for consumers.

Butler confirmed this, saying his company has paused and scaled back orders.

“Retailers are adjusting their strategies: scheduling earlier purchases, reducing volume where they’re uncertain about demand and being cautious with inventory,” Butler said.

He added that some retailers are shifting their focus to direct-to-consumer shipping rather than carrying large store inventories to reduce overstock risk.

Rob Handfield, the Bank of America university distinguished professor of supply chain management at North Carolina State University in Raleigh, said the method of receiving inventory is affected as well.

“As a result of the push for early delivery, ocean freight rates escalated dramatically, as everyone was pushing to get products early and avoid tariffs,” Handfield said. “Ocean freight lead times have also escalated to 65 days on average.”

Butler said his company has raised prices to help offset some of the increased duty and import costs.

“We’ve tried to absorb some cost ourselves rather than push all of it on consumers,” Butler said. “We’re also diversifying sourcing. While China remains a major part of our supply chain, we’re working with suppliers in Asia and other parts of the world to reduce risk.”

Regardless, "it's been a really rough year for all,” Warner said.

In response to the significant impact tariffs are having on the industry, experts explained shoppers were advised to “buy now, buy early,” Butler said.

Handfield said there seems to be a trend of people purchasing decor earlier in the year, even as soon as the day after Halloween.

“You can expect to find better selection early on, but the longer you wait, the more likely prices will drop as stores want to deplete inventory as they get closer to Christmas,” he said.

Butler said some consumers may buy fewer decorations this year due to the higher prices.

“Some may switch between artificial and real trees or choose different styles and brands based on availability and price,” Butler said.

Manufacturers around the world are really hurting because of “the net impact of the tariffs,” according to Handfield.

“Producers of toys and kitchenware are seeing demand stagnate; production of apparel and soft goods is declining; and because of the suddenness of the tariffs, manufacturers are sitting on a ton of finished-goods inventory no one wants to buy,” he said.

He added that large factories with a lot of money can afford to wait out the tariffs, but smaller manufacturers are likely to go under.

“They can’t keep this up for more than a few weeks,” Handfield said. “Everyone has a limit as to how long they can hold out. And if some of these apparel factories go under, they cannot be replaced overnight. It could take years to replicate their capabilities, especially in China and India.”

Butler is hopeful that the tariffs will become more stable over time.

“Supply chains should normalize, leading to fewer disruptions, more reliable lead times and fuller assortments,” Butler said. “Ultimately, I hope consumers will see more choice and less pressure on price while still enjoying quality and innovation in decor.”