🔗 Share this article

Several new American import duties targeting imported cabinet units, bathroom vanities, timber, and specific upholstered furniture have been implemented.

Following a proclamation signed by President Donald Trump in the previous month, a ten percent tariff on softwood lumber imports was activated this Tuesday.

Import Duty Percentages and Future Increases

A 25% levy will also apply on imported kitchen cabinets and bathroom vanities – rising to 50% on the first of January – while a 25% import tax on upholstered wooden furniture will increase to thirty percent, provided that no updated trade deals get finalized.

Donald Trump has referenced the imperative to shield US manufacturers and security considerations for the action, but certain sector experts fear the duties could raise housing costs and cause customers postpone home renovations.

Explaining Import Taxes

Import taxes are charges on overseas merchandise usually imposed as a percentage of a product's price and are paid to the American authorities by companies shipping in the goods.

These firms may pass some or all of the increased charge on to their buyers, which in this instance means typical American consumers and additional American firms.

Past Duty Approaches

The president's tariff policies have been a central element of his latest term in the White House.

Donald Trump has before implemented industry-focused tariffs on steel, metallic element, light metal, cars, and auto parts.

Effect on Canada

The supplementary international ten percent duties on soft timber means the material from the Canadian nation – the major international source worldwide and a significant American provider – is now tariffed at over forty-five percent.

There is already a total 35.16% US offsetting and anti-dumping duties imposed on the majority of northern industry players as part of a long-running conflict over the item between the two countries.

Bilateral Pacts and Exemptions

In accordance with current trade deals with the US, levies on lumber items from the UK will not exceed ten percent, while those from the EU bloc and Japan will not surpass fifteen percent.

Official Justification

The White House says the president's tariffs have been put in place "to protect against threats" to the United States' domestic security and to "strengthen industrial production".

Industry Apprehensions

But the Residential Construction Group said in a announcement in last month that the new levies could escalate residential construction prices.

"These fresh duties will create additional obstacles for an presently strained housing market by additionally increasing construction and renovation costs," remarked chairman the association's chairman.

Seller Viewpoint

As per an advisory firm top official and senior retail analyst the expert, merchants will have little option but to hike rates on overseas items.

Speaking to a news outlet last month, she noted retailers would try not to raise prices too much before the year-end shopping, but "they can't absorb thirty percent tariffs on top of existing duties that are presently enforced".

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

Retail Leader Response

In the previous month Swedish furniture giant the company commented the levies on overseas home goods make doing business "more difficult".

"These duties are affecting our operations like other companies, and we are closely monitoring the developing circumstances," the enterprise said.