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Several new US tariffs targeting foreign-sourced cabinet units, vanities, timber, and certain upholstered furniture have been implemented.

As per a executive order signed by President Donald Trump in the previous month, a 10% import tax on soft timber imports was activated starting Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent levy is also imposed on foreign-made cabinet units and vanities – rising to 50% on 1 January – while a twenty-five percent tariff on upholstered wooden furniture will increase to thirty percent, except if new trade agreements are reached.

Trump has pointed to the need to protect American producers and national security concerns for the decision, but various industry players fear the taxes could increase home expenses and cause customers postpone residential upgrades.

Defining Customs Duties

Tariffs are taxes on imported goods usually imposed as a share of a good's value and are remitted to the federal administration by firms importing the products.

These firms may pass some or all of the additional expense on to their buyers, which in this case means typical American consumers and further domestic companies.

Past Import Tax Strategies

The president's import tax strategies have been a central element of his second term in the White House.

Donald Trump has before implemented targeted duties on metal, copper, aluminium, cars, and auto parts.

Impact on Canadian Producers

The extra global 10% levies on softwood lumber signifies the commodity from the northern neighbor – the major international source worldwide and a key US supplier – is now tariffed at more than 45%.

There is currently a combined 35.16% US offsetting and anti-dumping duties applied on the majority of northern industry players as part of a long-running disagreement over the commodity between the both nations.

Bilateral Pacts and Exemptions

As part of existing trade deals with the United States, levies on lumber items from the Britain will not exceed ten percent, while those from the European Union and Japanese nation will not go above fifteen percent.

Official Rationale

The White House states the president's duties have been implemented "to defend from dangers" to the US's homeland defense and to "strengthen factory output".

Industry Concerns

But the Residential Construction Group stated in a announcement in last month that the fresh tariffs could increase housing costs.

"These fresh duties will generate further challenges for an presently strained housing market by additionally increasing building and remodeling expenses," remarked head the association's chairman.

Retailer Viewpoint

As per Telsey Advisory Group managing director and senior retail analyst the analyst, retailers will have little option but to hike rates on foreign products.

In comments to a broadcasting network last month, she noted retailers would try not to increase costs too much ahead of the festive period, but "they cannot withstand thirty percent duties on top of other tariffs that are currently active".

"They will need to pass through expenses, probably in the form of a double-digit cost hike," she remarked.

Ikea Reaction

Last month Scandinavian home furnishings leader Ikea said the levies on overseas home goods cause conducting commerce "more difficult".

"The levies are affecting our operations in the same way as other companies, and we are attentively observing the changing scenario," the enterprise remarked.