🔗 Share this article

A series of new American import duties targeting imported kitchen cabinets, vanities, timber, and specific furnished seating are now in effect.

Following a executive order signed by Chief Executive Donald Trump in the previous month, a ten percent tariff on soft timber imports came into play this Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent duty is also imposed on foreign-made kitchen cabinets and vanities – escalating to 50% on the first of January – while a 25% tariff on wooden seating with fabric will increase to 30%, except if fresh commercial pacts are reached.

Donald Trump has referenced the need to shield US manufacturers and defense interests for the action, but various industry players are concerned the tariffs could raise home expenses and cause customers put off house remodeling.

Explaining Tariffs

Import taxes are charges on foreign products commonly applied as a percentage of a product's price and are remitted to the federal administration by companies importing the goods.

These companies may pass some or all of the extra cost on to their buyers, which in this instance means ordinary Americans and additional American firms.

Earlier Tariff Policies

The chief executive's import tax strategies have been a central element of his current administration in the executive office.

Donald Trump has previously imposed sector-specific tariffs on metal, metallic element, light metal, vehicles, and vehicle components.

Effect on Canada

The additional global ten percent duties on softwood lumber implies the product from the northern neighbor – the major international source globally and a significant domestic source – is now taxed at over forty-five percent.

There is already a combined thirty-five point sixteen percent US countervailing and anti-dumping duties placed on nearly all northern industry players as part of a decades-long disagreement over the item between the both nations.

Commercial Agreements and Exemptions

Under existing bilateral pacts with the US, tariffs on lumber items from the UK will not surpass 10%, while those from the European community and Japanese nation will not exceed 15%.

White House Rationale

The executive branch claims Donald Trump's tariffs have been put in place "to guard against threats" to the America's homeland defense and to "enhance factory output".

Industry Worries

But the National Association of Homebuilders commented in a statement in the end of September that the recent duties could raise housing costs.

"These recent levies will produce additional obstacles for an currently struggling housing market by further raising building and remodeling expenses," said leader the association's chairman.

Merchant Viewpoint

As per Telsey Advisory Group managing director and senior retail analyst the expert, merchants will have little option but to hike rates on overseas items.

Speaking to a broadcasting network in the previous month, she said retailers would try not to increase costs excessively prior to the holiday season, but "they can't absorb thirty percent duties on in addition to previous levies that are currently active".

"They must shift costs, almost certainly in the guise of a significant rate rise," she added.

Ikea Response

Recently Scandinavian retail major the company commented the levies on furniture imports render operating "more difficult".

"These duties are impacting our business like fellow businesses, and we are carefully watching the developing circumstances," the company stated.