🔗 Share this article

A series of recently announced American levies targeting imported kitchen cabinets, vanities, lumber, and certain furnished seating have been implemented.

Following a presidential directive authorized by President Donald Trump in the previous month, a 10% tariff on wood materials foreign shipments took effect this Tuesday.

Tariff Rates and Future Increases

A 25% levy will also apply on foreign-made kitchen cabinets and bathroom vanities – escalating to fifty percent on the first of January – while a twenty-five percent import tax on upholstered wooden furniture is scheduled to grow to 30%, unless new trade agreements get finalized.

The President has cited the imperative to protect US manufacturers and defense interests for the decision, but various industry players fear the tariffs could increase housing costs and make homeowners put off home renovations.

Explaining Customs Duties

Tariffs are taxes on foreign products usually applied as a portion of a item's value and are submitted to the US government by businesses importing the products.

These companies may transfer a portion or the entirety of the increased charge on to their customers, which in this case means everyday US citizens and further domestic companies.

Past Tariff Policies

The leader's import tax strategies have been a key feature of his latest term in the executive office.

Donald Trump has earlier enacted sector-specific tariffs on steel, copper, light metal, cars, and vehicle components.

Effect on Canada

The supplementary international ten percent levies on softwood lumber means the product from the northern neighbor – the number two global supplier globally and a significant domestic source – is now taxed at more than 45%.

There is presently a total 35.16% American countervailing and anti-dumping duties imposed on nearly all Canada-based manufacturers as part of a years-old conflict over the product between the both nations.

Bilateral Pacts and Exclusions

As part of active bilateral pacts with the US, duties on timber goods from the United Kingdom will not surpass ten percent, while those from the EU bloc and Japan will not exceed 15%.

White House Rationale

The executive branch says Donald Trump's tariffs have been enacted "to guard against dangers" to the America's domestic security and to "bolster manufacturing".

Business Worries

But the Residential Construction Group said in a release in the end of September that the recent duties could raise housing costs.

"These fresh duties will create extra challenges for an presently strained housing market by further raising development and upgrade charges," remarked head Buddy Hughes.

Merchant Outlook

Based on an advisory firm managing director and market analyst the analyst, retailers will have no choice but to increase costs on foreign products.

During an interview with a media partner last month, she said sellers would try not to raise prices drastically ahead of the year-end shopping, but "they cannot withstand 30% tariffs on top of existing duties that are already in place".

"They will need to shift costs, probably in the guise of a significant cost hike," she remarked.

Retail Leader Reaction

Recently Scandinavian retail major the retailer stated the levies on furniture imports make operating "harder".

"The tariffs are influencing our business similarly to fellow businesses, and we are carefully watching the changing scenario," the enterprise stated.