🔗 Share this article

A series of fresh US import duties targeting imported kitchen cabinets, bathroom vanities, lumber, and certain furnished seating have been implemented.

Under a presidential directive signed by President Donald Trump recently, a 10% tariff on wood materials foreign shipments was activated starting Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent tariff is likewise enforced on imported cabinet units and vanities – increasing to 50% on 1 January – while a twenty-five percent tariff on wooden seating with fabric will increase to thirty percent, except if fresh commercial pacts get agreed upon.

Trump has cited the necessity to safeguard domestic industries and defense interests for the decision, but some in the industry worry the taxes could raise housing costs and make customers delay house remodeling.

Explaining Import Taxes

Import taxes are taxes on imported goods typically imposed as a percentage of a product's price and are submitted to the federal administration by firms shipping in the goods.

These companies may transfer a portion or the entirety of the extra cost on to their clients, which in this scenario means everyday US citizens and other US businesses.

Previous Import Tax Strategies

The leader's import tax strategies have been a key feature of his second term in the White House.

Donald Trump has earlier enacted sector-specific duties on steel, metallic element, aluminium, cars, and vehicle components.

Impact on Canada

The supplementary worldwide ten percent levies on wood materials means the material from Canada – the second largest producer internationally and a key domestic source – is now tariffed at more than 45%.

There is already a total 35.16% US offsetting and anti-dumping duties applied on most Canada-based manufacturers as part of a years-old disagreement over the commodity between the both nations.

Commercial Agreements and Exemptions

Under existing commercial agreements with the United States, duties on lumber items from the UK will not go beyond ten percent, while those from the European community and Japanese nation will not surpass fifteen percent.

White House Justification

The executive branch claims the president's tariffs have been put in place "to defend from dangers" to the United States' national security and to "enhance manufacturing".

Sector Concerns

But the National Association of Homebuilders commented in a release in late September that the new levies could increase residential construction prices.

"These new tariffs will produce additional obstacles for an presently strained homebuilding industry by even more elevating building and remodeling expenses," said head Buddy Hughes.

Merchant Perspective

As per an advisory firm senior executive and senior retail analyst the expert, stores will have little option but to hike rates on imported goods.

Speaking to a news outlet recently, she stated sellers would attempt not to raise prices too much before the year-end shopping, but "they cannot withstand 30% tariffs on top of previous levies that are presently enforced".

"They must pass through costs, likely in the form of a double-digit rate rise," she added.

Ikea Response

In the previous month Scandinavian retail major the company said the levies on overseas home goods make operating "harder".

"The levies are influencing our operations similarly to additional firms, and we are carefully watching the developing circumstances," the company remarked.