Tariffs reshape holiday shopping in prices and selection

The Ah Louis Store in San Luis Obispo turns into a winter wonderland every holiday season.

- By Mar ANDERSON

Ah Louis Store

SAN LUIS OBISPO'S Ah Louis Store gears up in November for the holidays.

Green garlands, giant nutcrackers, baubles and bows go up in early November on the historic downtown building that houses the gift shop. Inside, customers can choose from over 500 different types of ornaments and a variety of holiday gift baskets.

“We really just make it a magical spot,” co-owner Emily Butler said. “Whether you come in or not, we want to make sure that we're spreading that holiday joy.”

But Butler says she and her twin sister-business partner had to work harder this year to turn browsers into buyers and to make a profit. Many of the decorations and stocking stuffers they sell are made overseas and either did not arrive or got more expensive when President Trump imposed unusually high taxes on imported goods, she said.

In response, the sisters focused their selection on more profitable items such as nutcrackers and gift baskets. They’ve also noticed customers cutting back, selecting a $100 gift basket over the $150 version, or buying one ornament instead of several, Butler said.

“We're definitely seeing more cautious spending this year,” she said.

Along with the unpredictable tariffs, stubborn inflation and weak hiring have shaken consumer confidence in the U.S. economy. The vast majority of U.S. adults say they’ve noticed higher than usual prices for groceries, electricity and holiday gifts in recent months, according to a December poll from the Associated Press-NORC Center for Public Affairs Research.