Why Americans could face an artificial Christmas tree shortage

Industry Impact of Tariffs - The artificial Christmas business sources about 90% of its products from China historically [3][18] - Due to tariffs and other factors, the industry anticipates a shorter supply of Christmas goods and a slight increase in prices for consumers this year [10] - The CEO advises consumers to buy Christmas goods early, ahead of the Black Friday weekend, due to potential supply shortages and reduced promotions [10][11] - Tariffs have impacted affordability, with National Tree Company raising prices by about 10% on average [12][22] National Tree Company's Strategy - National Tree Company has diversified its supply chain, with approximately 55% of its trees and goods being manufactured outside of China this year [4] - Overall shipments for National Tree Company will be down about 25% this year [4][15] - The company is bringing in about 25% less product from its factory partners this year [15] - The company is splitting the impact of tariffs throughout the value chain, with suppliers and the company absorbing some costs, and some cost increases being passed on to consumers [24] - National Tree Company is not currently considering layoffs and is focused on efficient operations and automation [26][27] Advocacy and Future Outlook - The Christmas Trade Group, representing companies with about $1 billion in revenue and over 1,000 employees, is seeking tariff exemptions or exclusions from the administration [17][18] - Manufacturing trees in the US would be approximately 250% to 300% more expensive due to raw material imports and higher labor costs [20]