There are officially less than 10 days left until Christmas. Everyone is running around like headless chickens looking for gifts. Not only do we have to worry about them arriving on time once they’ve been sent, but we’re also noticing how the price of everything has gone up.
As always, many will blame President Donald Trump’s administration… Although in this case, it seems that he has had something to do with it. The import tariffs promoted by the president have raised the average amount we have to pay for our gifts this year: each American household will have to pay an average of $1,200 more for their Christmas gifts this year compared to what they spent in 2024.
A steep Christmas bill
Obviously, if customs duties are imposed on any imported goods, this increase in costs ends up being passed on to buyers. According to figures from the Treasury Department, Goldman Sachs has estimated that the bill being paid by US consumers—in tariff costs alone—has reached $159 billion, which means that each household is paying an average of $1,198 more from February to November.
While the coffers are filling up, the price of all consumer goods has only caused families to tighten their belts. Democratic Senator Maggie Hassan of New Hampshire called on both parties to work together to reduce costs. But does Congress know how to reduce government spending? We don’t think so.
Trump’s Tariffs and their consequences
In order to protect US industry from unfair foreign competition, Donald Trump decided to promote “free trade” with tariffs (which would be like promoting healthy living with a diet consisting exclusively of Lunchables). And it was no small thing. In fact, tariffs used to be in the single digits.
According to the Yale University Budget Lab, the average US tariff shot up from 2.4 percent in January 2025 to 16.8 percent this week, which is the highest level of tariffs since 1935.
While everyone is complaining about these tariffs that raise the price of goods, White House spokesman Kush Desai was quick to respond. He admitted that President Trump’s tariffs have secured millions of dollars in investment for job creation and hiring within the United States, rather than outsourcing to third countries. He also launched an attack on Democrats, criticizing them for decades of complaining about unbalanced trade agreements that hurt the American working class. Just when a president does something about it, they jump in to complain too.
Christmas gifts that will be most affected
As we have all guessed, gift prices are skyrocketing for the holiday season. In fact, it has been calculated that key items for the holidays this year are 26% more expensive than on Santa Claus’s list for 2024. However, this price increase is not uniform, but rather there have been ups and downs. For example, kitchen items have skyrocketed by 38%.
This is closely followed by electronics, which have risen by 34%. If you are gifting pajamas or wardrobe staples as gifts, clothing and shoes cost 20% more. Even children’s toys have seen a 17% price increase. If it was manufactured abroad, you can be sure you’ll pay more for it.
Those who are more into technology have probably been following price fluctuations on online platforms such as Amazon all year long. There has been a huge change between the prices at the beginning of the year and what they are now.
How can we get around this price increase? Unless we find items produced in the United States, it seems that the last option will be to buy them second-hand. Purchases at thrift stores are not subject to any tariffs, the item has already depreciated, and it is probably not so worn that it cannot be given as a gift. If you are a little overwhelmed with gifts this Christmas, you can try your hand at crafts or give gently used items.