A grandmother hugs her granddaughter at a Christmas celebration at home. A Christmas tree with gifts is lit up in the background.

How Tariffs Could Impact the 2025 Holiday Season—and How to Navigate Them

Tariffs—taxes placed on imported goods—are shaping this year’s holiday shopping season. Here’s what you need to know:

  • Artificial Christmas trees are expected to cost 10% to 20% more than last year due to increased tariff costs.
  • Electronic toys made in China now carry an extra 25% to 50%.
  • Overall, tariffs could add $132 per person to holiday spending compared to last year.

How Tariffs Could Impact Your Holiday

When tariffs rise, retailers pay more for imported products. Those higher costs often translate into:

  • Increased prices and fewer discounts.
  • Tighter inventory on popular gifts like electronics, toys, clothing, and seasonal décor.
  • Slower restocking and reduced product variety as retailers adjust supply chains or shift to domestic alternatives.

Another wrinkle this year: Items shipped directly from overseas can trigger customs duties or brokerage fees. According to Virgina Tech News, “Shoppers may also see a surprise fee of $80 to $200 from their package delivery service when an item they ordered from abroad arrives, sometimes equal to more than the cost of the item itself.”

These unexpected fees often appear after delivery as bills from carriers such as UPS, FedEx, or USPS. To avoid surprises, check shipping details carefully before you buy.

7 Tips To Navigate Tariffs This Holiday Season

  1. Start shopping early: Give yourself time to compare prices and avoid stockouts.
  2. Compare across retailers and formats: Chains, local shops, online marketplaces, and warehouse clubs may handle tariff costs differently.
  3. Check shipping origins: Look for “Ships from” or “Sold by” details when shopping online. Domestic fulfillment usually avoids unexpected import fees.
  4. Watch for retailer-specific promotions: Expect targeted deals, bundles, and loyalty rewards instead of broad discounts.
  5. Consider non-tariff-sensitive gifts: Experiences, subscriptions, handmade items, secondhand gifts, and locally produced goods often offer more stable pricing.
  6. Stay flexible with brands and models: Alternatives from non-affected regions may be more affordable.
  7. Set—and stick to—a holiday budget: Remember, there’s no pressure to overspend. Set a realistic holiday budget and stick to it.

Bottom line: With early planning, smart comparisons, and attention to shipping details, you can navigate a tariff-influenced holiday season without blowing your budget.

Want more? Read our blog, Top 3 Online Holiday Shopping Scams to Watch Out For

We’re Here for You!

Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.