Imagine this: It's the holiday season, and millions of Americans are excitedly decking out their homes with artificial Christmas trees, even though hardly any of these festive faux firs are crafted right here in the U.S., and their costs have jumped thanks to new tariffs. But here's where it gets controversial—does true holiday spirit mean supporting local jobs, or is it all about getting the best deal on convenience and quality from overseas? Stick with me as we unpack this shiny tangle of tradition, economics, and global trade that could change how you view your next holiday setup.
Picture a crisp December morning in Fairfield, California, where Mark Latino and a small team of skilled workers are operating a specialized machine that's been a staple since nearly a century ago. This vintage contraption, stretching over 35 feet long, transforms sheets of vinyl into glittering silver tinsel strands that will soon adorn artificial Christmas tree branches.
Latino serves as the CEO of Lee Display, a company his great-grandfather established back in 1902. What started with crafting delicate handmade velvet and silk flowers for hats has evolved into one of the rare U.S.-based firms still producing artificial Christmas trees—about 10,000 units annually.
This year, however, tariffs have cast a spotlight on these plastic trees, revealing just how reliant the U.S. is on international suppliers for its holiday décor. Prices for fake trees surged by 10% to 15% due to recent import taxes, as reported by the American Christmas Tree Association, a key industry group. Retailers responded by scaling back orders and grappling with steeper costs for their imported inventory.
Yet, despite these challenges, tree manufacturers aren't rushing to relocate major production back to American soil after years of operations in Asia. Artificial trees demand a lot of hands-on effort, including integrating holiday lights and other parts that aren't readily available domestically, explained Chris Butler, CEO of National Tree Co., which moves over a million of these trees each year.
Butler also pointed out that U.S. shoppers are extremely budget-conscious when it comes to festive decorations.
"Slapping a 'Made in the U.S.A.' label on the packaging won't fly if the price doubles," Butler warned. "Even a 20% hike would kill sales."
According to the American Christmas Tree Association, roughly 80% of U.S. households opting for a Christmas tree this season will choose an artificial one—a steady figure for at least 15 years.
Mac Harman, founder and CEO of Balsam Brands, which peddles hundreds of thousands of Balsam Hill trees yearly, noted that many Americans enjoy assembling their trees right after Thanksgiving and keeping them up for weeks, which would wilt a real tree. Plus, some folks have allergies to the mold spores on live trees, making fakes a healthier choice.
Convenience plays a huge role too; Butler mentioned that 80% of artificial trees sold annually come pre-lit with lights already attached.
This preference for ease was a big factor in why production migrated overseas—first to Thailand in the early 1990s, then to China around a decade later. Stringing lights by hand is a painstaking, time-intensive task, as Harman described.
"Can you imagine rounding up 15,000 Americans eager to spend their days wiring lights onto Christmas trees?" Harman asked rhetorically.
Crafting a single artificial tree typically requires one to two hours, from shaping and trimming the needles to assembling branches and adding lights, Butler elaborated. In China, where 90% of these trees originate, workers earn between $1.50 and $2 per hour.
Harman praised the precision of his Chinese partners' light-wrapping team, comparing their skill to watching an Olympic athlete in action. One of Balsam Brands' collaborators employs 15,000 to 20,000 workers, while another in Indonesia has up to 10,000—many of whom are seasonal hires, given the lull in orders from October to February.
During the first Trump administration, when tariffs on imported holiday items were threatened (though ultimately postponed), Balsam Brands, headquartered in Redwood City, California, explored producing trees in Ohio. They consulted experts and pondered automation, but calculated that a tree priced at $800 would soar to $3,000 if made domestically. They couldn't even source a U.S. supplier for the simple pair of gloves included in each box to help fluff branches.
Lee Display keeps a lean operation, with just three or four full-time staff, swelling during the holiday peak for installations and displays. Roughly half their revenue comes from custom setups for retailers like Macy’s, the rest from direct consumer sales.
Latino appreciates the agility of local production, avoiding long overseas shipping delays.
"I have direct oversight—every success or slip-up is on me, thanks to my planning and craftsmanship," he shared.
Still, tariffs hit Lee Display hard. James Latino, who handles business development and marketing, revealed they skipped importing lights or decorations from China this year, drawing from existing stock. Supplies are dwindling, so next year will mean paying more for imports.
Some companies are diversifying to reduce dependence on China. National Tree Co., based in Cranford, New Jersey, shifted some operations to Cambodia in 2024 and might source all trees elsewhere by next year if needed, Butler said.
But diversification doesn't shield them from tariff woes. In April, the Trump administration proposed a 49% tariff on Cambodian goods, later slashed to 19%. Chinese tree tariffs fluctuated but now average 20%, per the American Christmas Tree Association.
Butler shared that his firm imported fewer trees this year and bumped prices 10%. They used much of the extra revenue for customer discounts amid sluggish demand, fueled by economic anxieties.
"These are optional purchases—people might just skip a year," Butler observed.
Balsam Brands trimmed its staff by 10%, scrapped travel, halted raises, and even cut back on weekly office lunches to weather the tariff storm. They also increased prices by 10%.
Harman reported a 5% to 10% sales dip in the U.S., but a 10% or higher rise in markets like Germany, Australia, Canada, and France—hinting that tariffs are cooling domestic enthusiasm.
"If we gauge holiday cheer by the number of decorations folks display, this might be a tad less joyful season," Harman mused.
And this is the part most people miss: In a world where convenience and low costs dominate our choices, are we sacrificing American jobs for the sake of a perfect, pre-lit tree? What if tariffs actually encourage innovation in U.S. manufacturing—could that spark a renaissance in domestic holiday goods? Do you think the true spirit of Christmas lies in supporting local artisans, or is global trade the smarter way to keep celebrations affordable and accessible? Share your thoughts in the comments—do you agree that price trumps patriotism when it comes to your tree, or should we push for more 'Made in America' options?
AP Video Journalist Terry Chea contributed from Fairfield, California.
