You’ve probably noticed that permanent Christmas lights seem more expensive than normal lately. Tariffs on imported lighting components are a major factor driving up costs, yet many homeowners are unaware of this change.
At Lux Lights, like many other lighting companies, we’ve had to adjust to these pricing shifts as costs between the U.S. and key trade partners, like China, continue to change.
In this article, you'll learn:
- How tariffs affect permanent lighting prices
- How to spot when tariff costs are passed on to you
- How to avoid overpaying whether you're DIY-ing, hiring a contractor, or working with a lighting company
What Are Tariffs, and Why Do They Matter for Christmas Lights?
Simply put, a tariff is a tax set up by the government on goods and services. This can impact goods and services imported from other countries. They are also known as duties or customs that protect a country’s economy.
U.S. tariffs on imported LED products from China, especially those under Section 301 of the 1974 Trade Act, have led to price increases. These tariffs, originally ranging between 7.5% and 25%, were part of a broader response to trade concerns raised in 2018. While they’ve since been reviewed and adjusted, many of these added costs remain, and discussions about further increases or potential exemptions are still ongoing.
Ultimately, these tariffs were meant to support U.S. industries but have caused real challenges for the permanent lighting market, especially for companies using imported parts.
How Tariffs Drive Up the Cost of Permanent Christmas Lights
Here’s a breakdown of how tariffs affect the cost of lighting systems:
- Costs More to Make the Lights: Key parts, like LED drivers, sensors, microchips, and circuit boards, cost more due to the tariffs. Lighting companies either have to pay more themselves or raise prices for customers.
- Prices Go Up for Homeowners: Since it costs more to make the lights, many companies charge more for their products and/or services.
- Trouble Getting Parts: Some companies are trying to get parts from other places like Vietnam or India. Others are looking for suppliers in the U.S., but that can be hard and expensive.
- Limited U.S. Production: While tariffs aim to encourage local manufacturing, the U.S. doesn’t yet have the factories or infrastructure to make all lighting parts affordably.
- Tough on Small Businesses: New and smaller companies often don’t have the money to handle higher costs. Some may cut back on new ideas or even stop selling their lights altogether.
In short: Section 301 tariffs have made permanent lighting more expensive and harder to produce in the U.S.
What Homeowners Can Do to Avoid Paying Extra
If you’re shopping for permanent Christmas lights and want to avoid hidden tariff-related markups, there are smart steps you can take. While you may not be able to control global trade policy, you can be an informed buyer, and that makes a big difference.
Compare Total Value—Not Just the Sticker Price
It’s tempting to go with the lowest quote, but make sure you're comparing the full value:
- Warranty and maintenance coverage
- Product durability and performance
- Whether the company absorbs costs or passes them on
Timing Of Purchase
Tariffs and component pricing can fluctuate throughout the year. Installing during off-peak seasons (spring or early fall) may help you avoid seasonal markups tied to material shortages or rushed imports. You may also catch deals before price increases hit.
Choose Brands or Installers with Smart Supply Chains
Some companies have already done the hard work of diversifying their supply chain to avoid overreliance on tariffed imports. Others may manufacture or assemble parts domestically. While this isn’t always advertised, asking about their sourcing and pricing approach can reveal whether they’ve taken steps to minimize tariff costs for you.
How Some Companies Are Helping Buyers Avoid Tariff Costs
Strategies companies have used to avoid these rising costs include:
- Domestic Assembly: Making or assembling products in the U.S. to avoid tariffs on imported goods.
- Long-term Contracts: Locking in better pricing by planning ahead with suppliers.
- U.S. Stockpiling: Goods are imported in large quantities before tariffs are implemented. This creates a buffer stock in inventory.
- Utilizing Duty Drawback Programs: Some businesses can get money back on tariffs they’ve already paid if the products are later shipped out of the country.
Ready to Shop Smarter for Permanent Lighting?
At the end of the day, tariffs have quietly added a layer of complexity to buying permanent Christmas lights, often pushing prices higher without many homeowners realizing why. Now that you understand how tariffs work and what steps you can take to avoid overpaying, you’re in a much better position to shop smart.
Still wondering if permanent lights are worth it?
Check out our next blog: Are Permanent Christmas Lights Worth It?
It covers energy savings, long-term value, and how permanent lights stack up over time to help you celebrate brighter, with no surprises on your bill.
