Tariffs, input costs put pressure on Christmas tree prices
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Artificial Christmas trees are becoming more expensive due to tariffs, driving more customers to purchase real trees. Even though demand for homegrown trees may increase, some tree growers across the state say their trees are getting more expensive too.
And they’re already seeing signs of a busy season ahead.
Tony Guggisberg, 58, owns Guggisberg Tree Farm about 10 miles south of New Ulm. He’s preparing for the holiday season sales.
“I really don't tag a lot of the young trees,” Guggisberg said. “Because even though they might want a small tree, I got to save those for next year.”
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Guggisberg plants over 1,500 trees per year to make sure he has a healthy stock for customers. But it’s not cheap—fertilizer, tree seedlings, labor and other expenses are getting more costly. So, his prices have also gone up.
He says he hopes for a good turnout this season—so long as the weather holds out.
“We try to keep the prices very competitive,” Guggisberg said. “Because we want people to have real trees.”
And according to the National Christmas Tree Association, about 25 to 30 million live Christmas trees are sold in the country every year, with close to 350 million trees currently growing on farms.
The Real Christmas Tree Board—a national promotion and research organization funded by North American Christmas tree growers that’s overseen and authorized by the federal Department of Agriculture—also conducted its annual wholesale grower survey in August for the 2025 season.
Around 84 percent of respondents say they don’t anticipate wholesale price increases this year, though prices consumers may pay are varied and set by retailers.
Supply is projected to be strong, and nearly 8 in 10 growers expected to sell the same number of trees or more compared to last year, with 32 percent of respondents saying they expect to sell more in 2025.
And 42 percent of surveyed growers estimated their input costs increased by 5 percent or less and are being absorbed rather than passed along to customers.
About 40 miles away in rural Le Sueur at Brewery Hill Christmas Tree Farm, owner Scott Willson, 66, delivers Christmas trees to customers. Wilson says he already had a busy opening weekend with about 2,000 showing up to pick out trees.
He adds that the crowds have been growing steadily each year. “It’s a steady increase, which is really good,” he said. “It helps us.”
But the increasing cost to do business means Wilson has to weigh his options when pricing his goods, including wreaths. He says he tries to keep prices relatively affordable for customers. He’s capping sales at 2,000 trees to make sure he has enough supply for the future. It can take six to ten years for specific kinds of trees to become harvestable, and a lot of input costs go into growing them.
“We have to increase a little bit,” Wilson said. “It’s the fertilization of the farm, of the trees out in the field, the herbicide costs, the gas.”
Artificial tree tariffs
Artificial trees are also seeing price increases—mostly driven by tariffs. According to the American Christmas Tree Association—an industry trade group representing those involved in the artificial Christmas tree industry—more than 80 percent of households putting up a tree will choose an artificial tree.
And more than 83 percent of artificial trees are made overseas.
The National Tree Company, a wholesaler of artificial trees and other holiday decor that works with retailers like Michaels, Wayfair, Macy’s and Amazon, says the tariffs have caused some other Christmas tree companies to go under. The company sells between 15 to 20 million artificial trees annually.
The average price for artificial trees can range between $100 to $300, with customers expected to pay a little more because of the tariffs.
CEO Chris Butler, says tariffs on goods imported from China increased by 145 percent, causing a 30-day production halt and a 15 to 20 percent reduction in goods shipped to the United States. The company had to raise prices by 10 percent, with some items seeing higher increases.
Currently, Butler says the company seeks tariff exemptions because of the unavailability of raw materials in the country.
“There’s just been the triple whammy effect of these tariffs on the industry,” he said. “Lighting, the PVC that’s made to use the branches, the metal that’s made to use the branches, there’s just not the availability at scale in the U.S. for those items.”
Tariffs and inflation are also affecting consumer behavior, according to Akshay Rao, General Mills Chair in Marketing at the Carlson School of Management at the University of Minnesota.
“If the price of product A increases, then people will start looking for alternatives, such as product B,” Rao said. “So artificial trees are now more expensive, so people will start looking at natural trees or homegrown trees, which tend to be manufactured to a greater degree within the U.S., so made available through tree farms within the U.S.”
However, Rao says prices are dependent on the amount of supply. Combined with increased demand, it could cause problems for consumers.
“And when supply is limited and demand increases,” he said. “What happens to prices? They go up.”
Hoping for a steady future
Meanwhile, back at Guggisberg Tree Farm, Guggisberg says he likes to keep a ready supply of trees, remembering that during the pandemic, the farm closed early due to high demand. And he doesn’t want that to happen again.
Even with a positive outlook for customers this season, Guggisberg says most farms are already gearing up for the 2026 holiday.
“We just hope to keep things steady,” Guggisberg said. “We try to predict it, but we don't know what the future holds eight to 10 years from now, so we just hope that people keep coming and buying real trees.”
