🔗 Share this article

A series of new United States tariffs targeting foreign-sourced kitchen cabinets, bathroom vanities, wood products, and select furnished seating have come into force.

Following a presidential directive authorized by Chief Executive Donald Trump recently, a 10% import tax on softwood lumber imports came into play on Tuesday.

Import Duty Percentages and Future Increases

A 25% tariff will also apply on foreign-made cabinet units and bathroom vanities – rising to 50% on 1 January – while a 25% import tax on upholstered wooden furniture is set to rise to thirty percent, unless updated trade deals get agreed upon.

Donald Trump has referenced the imperative to protect domestic industries and defense interests for the move, but certain sector experts worry the taxes could increase home expenses and make customers postpone home renovations.

Defining Import Taxes

Tariffs are taxes on imported goods usually charged as a share of a product's price and are remitted to the American authorities by businesses importing the goods.

These enterprises may shift part or the whole of the additional expense on to their buyers, which in this instance means ordinary Americans and other US businesses.

Past Tariff Policies

The leader's tariff policies have been a key feature of his second term in the presidency.

The president has before implemented targeted tariffs on steel, copper, aluminium, cars, and car pieces.

Effect on Canada

The supplementary worldwide 10% duties on soft timber means the material from the Canadian nation – the number two global supplier internationally and a significant domestic source – is now taxed at above 45 percent.

There is currently a total 35.16% American offsetting and trade remedy levies imposed on nearly all Canadian producers as part of a decades-long conflict over the product between the two countries.

Trade Deals and Exemptions

As part of current trade deals with the US, duties on lumber items from the UK will not surpass ten percent, while those from the European Union and Japan will not surpass 15%.

White House Justification

The executive branch says Trump's import taxes have been enacted "to defend from threats" to the America's national security and to "enhance factory output".

Business Apprehensions

But the National Association of Homebuilders commented in a announcement in last month that the fresh tariffs could raise housing costs.

"These new tariffs will generate additional headwinds for an currently struggling housing market by even more elevating construction and renovation costs," said leader Buddy Hughes.

Merchant Perspective

Based on Telsey Advisory Group senior executive and market analyst the analyst, stores will have little option but to increase costs on overseas items.

Speaking to a media partner in the previous month, she noted stores would try not to raise prices drastically ahead of the festive period, but "they can't absorb thirty percent tariffs on top of previous levies that are currently active".

"They must pass through expenses, probably in the shape of a two-figure price increase," she added.

Retail Leader Reaction

Recently Scandinavian retail major Ikea commented the levies on imported furnishings render operating "more difficult".

"The levies are influencing our business like other companies, and we are attentively observing the changing scenario," the firm said.