🔗 Share this article

Multiple new United States import duties targeting foreign-sourced cabinet units, bathroom vanities, wood products, and specific upholstered furniture have come into force.

As per a executive order signed by Chief Executive Donald Trump last month, a 10% tariff on soft timber foreign shipments was activated starting Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent tariff will also apply on foreign-made kitchen cabinets and vanities – rising to 50% on 1 January – while a twenty-five percent import tax on wooden seating with fabric is scheduled to grow to thirty percent, unless new trade agreements are reached.

Donald Trump has pointed to the imperative to protect US manufacturers and national security concerns for the decision, but some in the industry fear the duties could raise residential prices and lead homeowners put off home renovations.

Understanding Import Taxes

Customs duties are taxes on imported goods typically charged as a percentage of a product's price and are paid to the federal administration by businesses importing the items.

These firms may shift part or the whole of the extra cost on to their customers, which in this case means typical American consumers and other US businesses.

Previous Tariff Policies

The chief executive's duty approaches have been a prominent aspect of his second term in the executive office.

The president has previously imposed sector-specific tariffs on metal, metallic element, aluminium, automobiles, and auto parts.

Effect on Canadian Producers

The supplementary international ten percent levies on soft timber means the commodity from the northern neighbor – the second largest producer internationally and a significant domestic source – is now taxed at more than 45%.

There is already a total thirty-five point sixteen percent American offsetting and trade remedy levies placed on the majority of Canada-based manufacturers as part of a long-running conflict over the item between the neighboring nations.

Trade Deals and Exemptions

As part of current trade deals with the America, duties on lumber items from the UK will not exceed ten percent, while those from the EU bloc and Japanese nation will not go above fifteen percent.

White House Rationale

The White House says Donald Trump's duties have been enacted "to protect against dangers" to the United States' national security and to "strengthen industrial production".

Sector Apprehensions

But the Residential Construction Group stated in a statement in last month that the recent duties could raise housing costs.

"These recent levies will create additional obstacles for an already challenged residential sector by additionally increasing building and remodeling expenses," said leader the association's chairman.

Seller Viewpoint

As per a consulting group managing director and market analyst the expert, merchants will have little option but to increase costs on foreign products.

Speaking to a broadcasting network last month, she stated stores would try not to raise prices drastically before the festive period, but "they are unable to accommodate 30% duties on top of other tariffs that are already in place".

"They must shift pricing, almost certainly in the form of a two-figure rate rise," she continued.

Retail Leader Statement

Recently Swedish retail major Ikea stated the tariffs on furniture imports make doing business "harder".

"The levies are influencing our operations in the same way as other companies, and we are closely monitoring the evolving situation," the company said.