7 Holiday Items That Will Cost More Due to Tariffs

Gift shopping is getting more expensive — here’s how to stay within your budget

David Rodeck,

AARP

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Published October 28, 2025

a bushel of hundred dollar bills hangs from holiday lights and a bow

AARP (Getty Images,3)

Key Takeaways

Start holiday shopping early to avoid price hikes and inventory shortages caused by tariffs and supply chain disruptions.
Expect higher costs on toys, clothing and holiday decorations.
Stretch your budget by exploring thrift stores, consignment shops and refurbished video game consoles.

Rising consumer prices due to tariffs are putting pressure on older Americans’ wallets as the holidays approach.

“This holiday season is unlike any we’ve seen before, fueled by tariffs, rising costs and limited inventory,” says David Gottlieb, chief revenue officer at Trax, a technology company that analyzes data for retailers. Trax data shows many consumers have already adjusted their shopping behaviors, becoming more cautious and strategic about how they spend.

A recent Trax survey found that more than two-thirds of consumers started their holiday shopping earlier than usual this year because of rising prices and other factors. That echoes a Bankrate survey conducted in July, in which 40 percent of Gen Xers and 46 percent of boomers said they’re concerned that holiday gifts will be more expensive this year.

To help you prepare, here are the items that are likely to cost more this holiday season due to tariffs, along with some tactics you can use to stretch your budget.

1. Toys

Most toys sold in the U.S. are imported, with the majority coming from China. As a result, toy prices overall rose 1.8 percent from May to June after the initial round of President Donald Trump’s tariffs, according to data from the U.S. Bureau of Labor Statistics. Major toy companies have announced price increases, including Mattel, the manufacturer of Barbie, and Hasbro, which produces many of the best-selling action figures.

Many retailers filled their warehouses during the summer and fall to keep a lid on price increases. However, shoppers could see significantly higher price tags this November and December if stores need to restock and purchase new inventory at higher import prices.

In addition, shortages are possible due to trade disruptions. The most popular toys of the year may not be available later in the holiday season.

To save money and get the toys you want to give your grandkids, start shopping now, says Jared Paget, a supply chain consultant in Kaysville, Utah. Depending on what’s available and what’s on sale, you may need to look beyond this year’s top sellers to find holiday deals.

2. Clothing

There’s bad news if you’re looking to give loved ones a new winter jacket or cozy socks for the holidays — clothing prices are creeping up. Although retailers absorbed much of the tariffs earlier in the year, they’ve started passing higher import costs on to customers, with clothing prices ticking up 2.2 percent from July to August, BLS data shows.

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To find affordably priced clothing this holiday season, consider shopping at thrift or secondhand stores for previously owned apparel. “You can also find new clothing at times with the original tags for up to 75 percent off retail prices at a local consignment store or an online fashion resale site like Poshmark,” says Andrea Woroch, a consumer savings adviser in Bakersfield, California.

Another option is to buy fewer clothes but prioritize higher-quality items that will last longer. Cheaper clothes that need to be replaced more frequently are not the bargain they once were.

3. Holiday decorations

Many holiday decorations, from lights to wreaths to decorative Christmas trees, are made overseas, with the majority imported from China. That means price hikes and possible shortages are likely.

Stocking up before Black Friday, when inventory typically starts to tighten, could help you avoid tariff surcharges. Or consider spending time with your grandkids creating homemade holiday decorations — you’ll build lasting memories and save money.

4. Imported alcohol

In July, the U.S. negotiated a 15 percent tariff rate with the European Union. That means fans of French wine, German beer and Scottish whiskey who like to indulge over the holidays should anticipate paying more. Higher shipping costs for importers could also drive up prices.

If you’re open to adjusting your tastes, buying wine or spirits made in the U.S. can help your dollars go further this holiday season. If the holidays won’t be the same without your favorite imported alcohol, compare prices across liquor stores and look for multi-bottle discounts or online specials.

5. Hot cocoa, cookies and other holiday treats

Grocery prices have been rising due to a combination of tariffs on imported foods and U.S. farm labor shortages. And, sadly for sweet tooths, some of the tastiest holiday foods will be more expensive this year.

“Candy prices have increased about 8 to 10 percent, mainly due to record cocoa shortages this year, with chocolate makers passing these costs on to shoppers,” says Shaya Sheikh, a professor of business analytics at the New York Institute of Technology. Tariffs on cocoa-producing countries such as Nigeria, Ghana and the Ivory Coast are also raising chocolate prices.

To save money, consider buying sweets made with less cocoa, like milk chocolate instead of dark chocolate, and opt for store brands over name brands.

6. Video games and consoles

If your grandchildren are hoping to find new PlayStation 5, Nintendo Switch 2 or Xbox consoles or games under the tree this year, expect to pay more. While laptops and smartphones are exempt from Chinese tariffs, gaming consoles and video games are classified as toys, resulting in rising prices.

If you’re shopping for a video game console, a refurbished model could cost up to 60 percent less, says Woroch. “Just make sure to stick with reputable retailers like Amazon Renewed or Best Buy, which offer warranties and money-back guarantees,” she says.

7. Jewelry

Gold prices recently hit a record high. That’s great for investors but not so great for holiday shoppers looking to buy gold jewelry for loved ones. There’s also a new 50 percent tariff on polished diamonds imported from India, America’s biggest source for diamonds.

To find jewelry deals this holiday season, consider alternative metals, such as silver or platinum, and lab-grown diamonds, which are significantly less expensive than natural diamonds.

The bottom line? Despite rising prices due to tariffs, the holidays don’t have to break your budget. Shop early, know where to find deals and look for value wherever you can to spread the holiday cheer this year.

The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

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David Rodeck is a writer based in New York City. He has written for Kiplinger’s Personal Finance, Forbes Advisor and Investopedia. Before becoming a full-time writer, Rodeck was a financial advisor.