Tariffs push up prices of festive decor in New York

For many families across the United States, Thanksgiving and Christmas are the times of year when they get to put up a Christmas tree, add treasured ornaments, spend time with their loved ones and tuck into a big roast dinner with all of the trimmings.

However, as they head to stores early this year, hoping to strike a bargain, many are experiencing "Bah, Humbug!" as they find the prices of Christmas trees and decorative holiday ornaments are pricier than last year.

Abby Hogue, 28, was shopping for Christmas ornaments in a New York metro area on a Wednesday afternoon, both for a project she was completing and also for herself.

"I was popping into this shop specifically looking for some Christmas stuff. I'm a photographer … I'm going to be completely honest: I went in there and was a little bit sticker-shocked by the prices.

"It felt pretty expensive. I understand one, this is New York and two, this is a pretty touristy area, and this seems like a pretty novelty shop. So, of course, there's going to be a little bit of a premium there. But compared to last year, I feel a little bit disappointed maybe, or just surprised. Should have kept that stuff from last year."

At least 90 percent of all artificial Christmas trees are made in China, according to the US Department of Commerce.

More than 20,000 types of Christmas products, such as tinsel, are mass-produced at the Yiwu International Trade City, dubbed the "Christmas market", in China's Zhejiang province. Vendors in Yiwu sell to more than 100 countries, including the US.

However, US imports of Chinese goods now face a 30 percent tariff.

"I definitely have noticed a hike in prices," Hogue said. "I definitely think that the China tariffs are affecting everyday goods and the consumer, which makes sense as the cost of goods is higher and that trickles down to the consumer and that's tough."

Meanwhile, business owners in New York warned that anyone attempting to deck the halls with boughs of holly should shop now, just in case there is a shortage closer to the holidays.

Chris Butler, CEO of National Tree Company, one of the largest importers of artificial Christmas trees in the US, spoke about limited inventory this year because of tariffs. Butler told CNBC that he has been forced to bring in 25 percent less inventory and raise prices by 10 percent.

Cathy Benavides, from Texas, was visiting New York with her family. She was looking at Christmas decorations to bring home as a memento. She said things were cheaper in her home state.

"Here in New York, the prices are very high compared to where I'm from. Very, very high, like, double," Benavides told China Daily.

"I'm just taking small things for memory. And with all respect, this same thing, we can get this, for like $2 or $3. But it costs $18.95 here.

"I wanted ornaments for the tree. But I'd rather not spend because of the prices. For Thanksgiving, we like to do a big one with the family. We try to get all together."

Two European tourists on a weeklong vacation to the US also lamented the high cost of Christmas goods as they shopped in a store near Times Square on a chilly Wednesday afternoon.

Jessi Becher and Konsti Traeger, both 26, from Germany, took a look at ornaments in a busy Christmas-themed store but left empty-handed.

"It's expensive," Becher said. "Here, it is more expensive than in Germany. (It makes us feel) like not buying. We will look for other places that are cheaper, maybe. We will shop at home in Germany."

Fewer containers

This year, fewer goods have arrived from Asia to the US, according to trade tracker Vizion. It found that only four containers arrived at US ports in the week of Oct 13, compared with 204 in the corresponding period last year.

Many US businesses also brought in goods much earlier than usual to ensure they had enough stock before tariffs began, said Jonathan Gold, vice-president of supply chain and customs policy at the National Retail Federation.

The US-China trade talks in Malaysia from Friday aimed to hash out trade issues. It came as the extension of the 90-day truce brokered between the two countries, which led to China facing a 30 percent tariff, expires on Saturday.

US President Donald Trump has threatened to place a further 100 percent tariff on goods from China, but he told Fox Business on Oct 17 that this was "not sustainable".

David William, from San Francisco, bought an ornament from a Christmas store in New York, but found prices were similar to what he had paid last year.

He said he was sure tariffs were affecting prices. "I'm not happy about tariffs. It's impacting the prices of nearly everything in this country. So no, I don't think that (Christmas goods) are immune from that. I'd like to see a resolution."

belindarobinson@chinadailyusa.com