🔗 Share this article

Multiple new American import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, lumber, and select furnished seating are now in effect.

As per a presidential directive signed by Chief Executive Donald Trump recently, a ten percent duty on soft timber foreign shipments took effect this Tuesday.

Tariff Rates and Future Increases

A 25% duty is also imposed on imported kitchen cabinets and bathroom vanities – increasing to fifty percent on January 1st – while a twenty-five percent import tax on upholstered wooden furniture will increase to thirty percent, unless new trade agreements are reached.

Donald Trump has pointed to the necessity to protect American producers and national security concerns for the decision, but some in the industry fear the duties could raise residential prices and cause consumers postpone home renovations.

Defining Tariffs

Tariffs are levies on imported goods typically charged as a portion of a product's cost and are paid to the American authorities by companies bringing in the items.

These companies may transfer a portion or the entirety of the additional expense on to their customers, which in this scenario means typical American consumers and other US businesses.

Previous Duty Approaches

The president's import tax strategies have been a key feature of his current administration in the presidency.

Trump has previously imposed targeted duties on steel, metallic element, aluminium, vehicles, and car pieces.

Effect on Canada

The extra worldwide ten percent duties 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 already a aggregate 35.16% American countervailing and trade remedy levies imposed on most northern industry players as part of a decades-long dispute over the product between the neighboring nations.

Bilateral Pacts and Exclusions

As part of active trade deals with the US, tariffs on lumber items from the Britain will not surpass 10%, while those from the EU bloc and Japan will not exceed fifteen percent.

Official Rationale

The presidential administration says the president's import taxes have been implemented "to defend from dangers" to the America's national security and to "strengthen manufacturing".

Business Concerns

But the Residential Construction Group commented in a statement in the end of September that the new levies could escalate homebuilding expenses.

"These new tariffs will create extra challenges for an presently strained housing market by additionally increasing construction and renovation costs," remarked leader the group's leader.

Merchant Outlook

Based on a consulting group top official and senior retail analyst Cristina Fernández, retailers will have little option but to increase costs on overseas items.

During an interview with a media partner last month, she said stores would try not to hike rates excessively before the festive period, but "they cannot withstand thirty percent duties on in addition to other tariffs that are currently active".

"They must pass through expenses, almost certainly in the guise of a two-figure price increase," she added.

Furniture Giant Reaction

Last month Scandinavian retail major the company commented the tariffs on imported furnishings make doing business "harder".

"The tariffs are influencing our operations similarly to other companies, and we are attentively observing the changing scenario," the company remarked.