This holiday season isn’t just about finding deals; it’s also about dodging tariffs. From groceries to gift wrap, imported products are carrying hefty new costs that retailers are starting to pass on to shoppers.
The impact varies wildly depending on what you’re buying.
Artificial Christmas trees face a 26.9% tariff rate, while books are only hit with 4.7%, according to the Mastercard Economics Institute’s holiday report. Understanding these differences can help you make smarter choices about where to spend your money.
The items hit hardest by tariffs
Some holiday staples are carrying particularly steep tariff rates.
Leather gloves top the list at 29.3%, followed by artificial Christmas trees (26.9%), ornaments (26.6%), sweaters (25.9%) and nativity scenes (25.5%).
Clothing overall faces a 25.4% rate, and sporting goods come in at 23.2%.
When looking at groceries, the following items are more expensive due to tariffs:
- Spiral-cut ham (up nearly 50%)
- Aluminum foil (up 40%)
- Fresh turkey (up 36%)
- Beef roasts (up nearly 20%)
- Wine (up to 15% more)
- Canned goods (up 5%)
- Fresh fruits and vegetables (up 2.5%)
Where to find relief
Other holiday purchases carry much lighter tariff burdens. Books are only tariffed at 4.7%, making them one of the smartest gift options this year. Here are some other items with lower tariff rates, relatively speaking:
- Chocolate (5.2%)
- Christmas lights (8.4%)
- Perfumes (9.9%)
- Videogame consoles (10.6%)
- Cosmetics (10.8%)
- Jewelry (14.7%)
Knowing what items carry the higher and lower tariffs allows you be smarter about how you shop and what you purchase this year.
Instead of buying clothing at about a 26% tariff rate, consider makeup or jewelry. Swap high-tariff goods for those that cost manufacturers less in import fees.
At the grocery store, choose frozen turkey over fresh. Retailers still use frozen turkey as a loss leader to get shoppers into stores and to keep prices steady.
Buy fresh or frozen fruits and vegetables instead of canned to avoid the steel tariff pass-through. So instead of canned cranberry sauce, purchase the fresh cranberries and make it yourself.
And consider alternatives to aluminum foil for food storage, such as reusable containers.
Buy American-made when possible
Half of Americans say they’re more likely than last year to purchase domestic-made products, according to a survey by the Alliance for American Manufacturing. Three-quarters prefer to buy U.S.-made products when possible.
The reason is simple: American-made goods avoid tariffs entirely. While shopping 100% American-made is nearly impossible in a globalized economy, focusing on domestically produced items — especially for big-ticket purchases — can help you sidestep the tariff burden.
The Alliance for American Manufacturing releases an annual “Made in America” gift guide featuring products made in all 50 states. Retailers like Uncommon Goods have dedicated made-in-USA sections, and American Made Man specializes in domestic goods.
Go tariff-proof with cards and experiences
Gift cards, experiences and digital subscriptions are completely tariff-proof because they’re not physical, imported goods. Shopping expert Trae Bodge tells MarketWatch that she recommends sites like Gift Card Granny, which sells gift cards up to 10% off their face value:
“You could either buy that gift card and give it as a gift and you’ll have saved 10%, or you could buy that gift card and then shop with it and you’ve essentially saved yourself up to 10%.”
Gift cards won’t necessarily help you or your giftee avoid tariffs, but they can help with a budget this holiday season. And December is a month when many retailers offer bonus cards with another minimum gift card purchase.
Shop early
This year, don’t wait for deals. Retailers ordered less inventory this year because of tariffs, which means popular items may sell out faster than usual.
More than 60% of tariff costs have been absorbed by U.S. businesses so far, some experts estimate, with less than 25% passed on to consumers. But as pre-tariff inventory runs out and profit margins shrink, retailers may have no choice but to raise prices.
Your best strategy is to comparison shop, buy sooner than later and focus on low-tariff or American-made options whenever you can.
Sources
MarketWatch; Groundwork Collaborative; The Guardian; Mastercard Economics Institute
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