Trees, just like other plants, produce O2 as a waste-product during photosynthesis.
Photosynthesis is the process of converting light energy into chemical energy (which can be stored).
Briefly, plants capture light and use its energy to convert carbon dioxide (CO2) and water (H2O) into carbohydrates (CH2O). This reaction creates oxygen as a waste-product, which the plant/tree releases. The carbohydrates made during photosynthesis can be combined into longer molecules, like fructose and starch (which plants use to e.g. grow).
You can do a small experiment to view Oxygen production from a leaf. Take a leaf (carefully) from a plant and put it in a glass of cold water (make sure the leaf is fully underwater). After leaving the glass in the sun for around an hour, you should be able to see a lot of bubbles (Oxygen).
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