🔗 Share this article

Multiple new American levies targeting imported kitchen cabinets, bathroom vanities, timber, and certain furnished seating have come into force.

Following a executive order enacted by President Donald Trump last month, a 10% duty on soft timber imports took effect this Tuesday.

Import Duty Percentages and Upcoming Changes

A 25% levy is also imposed on foreign-made kitchen cabinets and bathroom vanities – increasing to 50% on 1 January – while a 25% tariff on wooden seating with fabric is scheduled to grow to thirty percent, except if fresh commercial pacts get finalized.

The President has cited the necessity to protect American producers and security considerations for the action, but some in the industry worry the tariffs could increase residential prices and make consumers postpone residential upgrades.

Explaining Customs Duties

Import taxes are levies on foreign products usually charged as a percentage of a good's value and are remitted to the American authorities by companies bringing in the products.

These enterprises may transfer a portion or the entirety of the additional expense on to their buyers, which in this instance means everyday US citizens and other US businesses.

Past Tariff Policies

The chief executive's tariff policies have been a prominent aspect of his second term in the White House.

Trump has earlier enacted sector-specific tariffs on steel, copper, aluminium, cars, and car pieces.

Impact on Northern Neighbor

The supplementary global ten percent duties on soft timber signifies the material from the northern neighbor – the second largest producer globally and a key American provider – is now dutied at above 45 percent.

There is already a combined thirty-five point sixteen percent US countervailing and anti-dumping tariffs placed on most Canada-based manufacturers as part of a years-old dispute over the item between the two countries.

Commercial Agreements and Limitations

In accordance with current trade deals with the America, levies on timber goods from the Britain will not go beyond 10%, while those from the European community and Japanese nation will not surpass fifteen percent.

White House Explanation

The White House states the president's import taxes have been implemented "to protect against risks" to the United States' homeland defense and to "bolster industrial production".

Industry Concerns

But the National Association of Homebuilders commented in a statement in the end of September that the new levies could escalate housing costs.

"These new tariffs will produce further challenges for an presently strained residential sector by additionally increasing development and upgrade charges," said head Buddy Hughes.

Retailer Outlook

According to Telsey Advisory Group top official and retail expert Cristina Fernández, retailers will have little option but to hike rates on imported goods.

In comments to a media partner recently, she stated retailers would seek not to hike rates too much ahead of the festive period, but "they can't absorb thirty percent taxes on alongside other tariffs that are currently active".

"They will need to pass through pricing, almost certainly in the form of a significant price increase," she remarked.

Furniture Giant Statement

Recently Scandinavian furniture giant the company said the levies on furniture imports render conducting commerce "harder".

"The tariffs are impacting our operations like fellow businesses, and we are closely monitoring the evolving situation," the enterprise said.