On a recent December day, Mark Latino and his team at Lee Display were busy spinning sheets of vinyl into shimmering tinsel, a process carried out on a custom-made, nearly century-old machine. This Fairfield, California-based company, founded by Latino’s great-grandfather in 1902, is now one of the few remaining in the United States that still manufactures artificial Christmas trees, producing around 10,000 annually.
This year, however, the festive glow of fake Christmas trees has been dimmed by the twinkling light of tariffs, exposing America’s deep reliance on overseas production for its plastic firs. New import taxes have driven up prices for artificial trees by 10 to 15 per cent, according to the American Christmas Tree Association, forcing sellers to cut orders and absorb higher costs.
Despite these financial pressures, a significant shift of large-scale production back to the US remains unlikely, even after decades of manufacturing in Asia. Chris Butler, CEO of National Tree Co., which sells over a million artificial trees annually, explained that fake trees are inherently labour-intensive and require components, such as holiday lights, that are not readily produced in the US. Furthermore, American consumers are highly sensitive to price when it comes to holiday décor. "Putting a ‘Made in the U.S.A.’ sticker on the box won’t do any good if it’s twice as expensive," Mr Butler stated. "If it’s 20 per cent more expensive, it won’t sell."
The preference for artificial trees is strong among US residents, with approximately 80 per cent opting for a fake one this year – a figure that has remained consistent for at least 15 years. Mac Harman, founder and CEO of Balsam Brands, noted that many Americans prefer artificial trees because they can be set up earlier and left for weeks without drying out, unlike fresh-cut trees. Others choose them due to allergies to mould spores found on real trees.
Convenience also plays a major role, with 80 per cent of fake trees sold annually featuring pre-strung lights, a labour-intensive task that drove production away from the US, first to Thailand in the early 1990s and then to China a decade later. Mr Harman questioned, "Where are we going to get 15,000 people in America who want to string lights on Christmas trees?" The manufacturing process for an artificial Christmas tree, from moulding needles to tying branches and attaching lights, typically takes one to two hours. In China, where 90 per cent of fake trees are made, workers are paid between $1.50 to $2 per hour.
During the first Trump administration, when President Donald Trump threatened tariffs on imported Christmas décor, Balsam Brands explored the feasibility of manufacturing faux trees in Ohio. Despite hiring consultants and considering automation, the company concluded that a tree currently retailing for $800 would cost $3,000 if made in the US. Mr Harman even noted that Balsam struggled to find a US company to produce the simple pair of gloves included in each box for fluffing out branches.
Back at Lee Display, Mark Latino appreciates the control and speed of domestic production. "You have more control over it. I like to think that everything here is either my fault or my mistake or my careful planning and skill," he remarked. However, even this American manufacturer felt the pinch of tariffs. Latino’s son, James, who handles business development, confirmed that the company avoided importing lights or decorations from China this year, relying instead on existing stock. With supplies running low, they anticipate higher import costs next year.
