🔗 Share this article

Multiple fresh US import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, wood products, and specific upholstered furniture are now in effect.

Following a presidential directive enacted by Chief Executive Donald Trump recently, a ten percent duty on soft timber imports took effect on Tuesday.

Import Duty Percentages and Future Increases

A 25% duty is likewise enforced on foreign-made cabinet units and bathroom vanities – increasing to 50% on 1 January – while a 25% import tax on upholstered wooden furniture is set to rise to 30%, provided that no updated trade deals are reached.

Donald Trump has cited the necessity to shield American producers and defense interests for the decision, but certain sector experts fear the taxes could raise residential prices and make consumers put off home renovations.

Defining Tariffs

Import taxes are charges on imported goods usually imposed as a portion of a product's price and are paid to the American authorities by firms bringing in the items.

These companies may transfer a portion or the entirety of the additional expense on to their clients, which in this scenario means ordinary Americans and further domestic companies.

Previous Import Tax Strategies

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

Trump has earlier enacted targeted taxes on metal, metallic element, light metal, vehicles, and vehicle components.

Effect on Canada

The supplementary international ten percent tariffs on softwood lumber signifies the commodity from the Canadian nation – the second largest producer globally and a key US supplier – is now taxed at above 45 percent.

There is presently a combined 35.16% US offsetting and anti-dumping duties placed on nearly all northern industry players as part of a long-running conflict over the commodity between the two countries.

Commercial Agreements and Exclusions

In accordance with current bilateral pacts with the United States, levies on timber goods from the United Kingdom will not exceed 10%, while those from the European community and Japanese nation will not exceed 15%.

Administration Rationale

The White House says Donald Trump's duties have been implemented "to guard against dangers" to the United States' national security and to "enhance factory output".

Sector Worries

But the Homebuilders Association commented in a release in the end of September that the recent duties could raise residential construction prices.

"These fresh duties will produce extra obstacles for an currently struggling residential sector by further raising development and upgrade charges," said head the group's leader.

Seller Outlook

As per a consulting group senior executive and retail expert Cristina Fernández, retailers will have little option but to hike rates on imported goods.

In comments to a broadcasting network last month, she said sellers would attempt not to increase costs excessively prior to the year-end shopping, but "they can't absorb 30% duties on alongside other tariffs that are currently active".

"They'll have to shift costs, probably in the form of a double-digit rate rise," she continued.

Ikea Response

Recently Swedish furniture giant Ikea said the tariffs on furniture imports cause conducting commerce "more difficult".

"The tariffs are affecting our operations similarly to additional firms, and we are closely monitoring the evolving situation," the company said.