It might cost a bit more to get your holiday cheer on this year.
With continued tariffs placed on imports from China, mass-produced ornaments and other decorations are subject to higher prices. In 2023, the U.S. imported 88% of its total supply of Christmas decorations from China, according to U.S. Census Bureau data.
Tariffs on imported Christmas decor can be 30% or higher, and some items, such as holiday lights, face a tax as high as 63% on top of the previously established 33% tariff, according to the American Christmas Tree Association.
Jim Abicht stocks his shop, the Christmas Store on Main Street in downtown Smithfield, with an abundance of holiday items for indoor decorating, including one-of-a-kind and limited-production pieces.
This year, he said he has paid thousands of dollars more because of tariffs. The majority of his inventory comes from China. Other items ship from Germany, Vietnam and Taiwan — all countries facing U.S. tariffs.
“I’m paying my vendors anywhere from 10% to 30%, and I’m not making a profit off the tariffs,” Abicht said. “Consequently, things are more expensive this year and it can mean fewer people are able to buy exactly what they want.”
As shoppers check out, Abicht said he has noticed lower average tickets, meaning they are purchasing less expensive items or spending less overall.
“I’ve had seasons where I’ve had people walk in here and you thought they had Monopoly money to spend; it’s less of that this year,” he said. “Right now, some people are struggling with money and they’re more concerned with rent and food.”
Like most Christmas-themed stores, Abicht said he places his inventory orders in January each year.
“Back then, there wasn’t a tariff to speak of, so all of this came as, ‘Do you want the inventory or not?’” he said. “With the increased prices, if you don’t have good increased sales, you really haven’t done anything.”
Taylor’s Do It Center and Pleasants Hardware stores placed Christmas merchandise orders very early and well ahead of the tariffs, said Meg Walbridge, communications director.
“So this year is somewhat business as usual, with very little if any impact,” she said. “Next year, however, may be a bit of a different story.”
Rob Marshall, owner of the Christmas Mouse in Virginia Beach, also purchases about a year out. Because of that, he said he received slightly more than half of his goods — with more than 90% coming from China — before the tariffs went into effect.
The store’s ambience — 30,000 ornaments and themed trees, a hint of cinnamon in the air and year-round Christmas music — appeals to all of the senses. Christmas Mouse, a family-run business started 40 years ago, has nine stores, including its flagship in Williamsburg and at beach locations in North Carolina and South Carolina.
The retailer tried to source more from U.S.-based vendors this year, and Marshall said he hopes that will only increase as more people make items on 3D printers. He said he tries to price merchandise at a perceived value that his consumers are comfortable with.
“For the most part, because our items are low cost, there hasn’t been too much resistance,” he said. “I think that the folks that are selling higher-dollar items are where the numbers are more affected.”
But, he stressed, the days of getting an acrylic ornament for $2.99 are over.
“It’s almost impossible to find something like that. It’s just too cheap,” he said. The average price of an ornament in one of Marshall’s stores costs $10.
For the past 25 years, Marshall has showcased his wares at the Southern Christmas Show, an annual market in Charlotte, North Carolina. He said it’s four days of setup, 12 days of selling and four more days of dismantling and packing up approximately 3,000 square feet of inventory.
“We do good volume, but it is a lot of work,” he said. “We’re down 5% this year, and we’ve only been down at this show maybe three times in 25 years.”
Despite the heaviness surrounding the economy and tariffs felt by small businesses this year, Abicht said he still focuses on the joy the holiday brings his customers. The Christmas Store has been in business for 31 years.
“We sell future traditions,” he said. “And another nice thing about our retail, as opposed to most any other, is we never get a grumpy customer. When you walk around a bunch of Santa Clauses, angels and snowmen, you might have come in mad, but you can’t leave mad.”
Sandra J. Pennecke, 757-652-5836, [email protected]