ATLANTA, Ga. (Atlanta News First) — While inflation has shown signs of cooling, higher tariffs and rising costs on imported goods are pushing up the price of Christmas — especially toys — leaving many Georgia families feeling squeezed this holiday season.

Outside Cristo Rey Atlanta Jesuit High School on Tuesday, a line stretched around the block as parents, grandparents and children waited hours for help at the annual “Gifts From Heaven” Christmas giveaway, an event that serves hundreds of families across Atlanta.

Children shifted around excitedly as they waited. For parents, the long line came with a mix of hope and anxiety.

According to a new analysis from The Century Foundation, the pressure families are feeling is backed up by the numbers. The report found tariffs are driving up the cost of nearly every type of holiday gift, with 90% of clothing, 80% of toys, and 70% of electronics affected.

The analysis found popular holiday gifts cost about 26% more than in previous years — roughly $130 more per shopper.

Emory University Goizueta Business School professor Tom Smith said tariffs on goods imported from China play a major role.

“Most of these products are made in China,” Smith said. “We’ve got big tariffs on China, which means you’re going to be paying more to get gifts for your kids, your nieces, nephews.”

That reality is forcing parents across Georgia to make difficult choices between paying bills and preserving the joy of Christmas morning.

But when the doors finally opened at the giveaway, the tone shifted.

Cheers erupted as children ran through a tunnel and into a room filled with toys. For them, the economics behind rising prices didn’t matter. They didn’t know about inflation or tariffs — only that this felt like Christmas.

“Having a gift, I think that’s the highlight of their year,” Adeshola Adewoye said. “Having a gift under the tree is the highlight of every child’s year and their parents’ also.”

The “Gifts From Heaven” toy drive is led by Atlanta entrepreneur and philanthropist Nehemiah Davis, founder of The Nehemiah Davis Foundation, which partners with local business leaders and volunteers each year to provide toys, clothing, bikes, electronics, and holiday meals to children in need.

Organizers say the event regularly mobilizes more than 100 volunteers and distributes more than $100,000 worth of gifts, while also offering family-friendly activities such as bounce houses, face painting and games.

Over the years, the foundation says the toy drive and its related initiatives have served tens of thousands of children and families across metro Atlanta.

Organizers said the line never stopped moving — and neither did the need. As inflation and tariffs continue to impact prices, they say community-driven events like this one have become a lifeline for families trying to keep Christmas from coming up empty.

They hope to bring the event back again next year.

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