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A series of new US import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, lumber, and specific furnished seating have been implemented.

Following a proclamation authorized by President Donald Trump last month, a 10% tariff on wood materials foreign shipments was activated this Tuesday.

Tariff Rates and Future Increases

A 25% duty is likewise enforced on imported kitchen cabinets and vanities – rising to 50% on January 1st – while a twenty-five percent import tax on upholstered wooden furniture is set to rise to thirty percent, except if new trade agreements are reached.

Trump has cited the necessity to shield domestic industries and national security concerns for the action, but various industry players fear the tariffs could increase residential prices and make homeowners delay home renovations.

Understanding Import Taxes

Customs duties are charges on foreign products commonly imposed as a share of a good's value and are paid to the federal administration by companies bringing in the items.

These companies may transfer a portion or the entirety of the increased charge on to their customers, which in this instance means everyday US citizens and other US businesses.

Past Tariff Policies

The chief executive's tariff policies have been a central element of his second term in the presidency.

Donald Trump has previously imposed sector-specific taxes on metal, copper, light metal, cars, and auto parts.

Impact on Canada

The supplementary global 10% tariffs on soft timber implies the product from the Canadian nation – the major international source globally and a key American provider – is now dutied at over forty-five percent.

There is currently a total 35.16% US offsetting and anti-dumping tariffs applied on the majority of Canadian producers as part of a decades-long disagreement over the product between the neighboring nations.

Trade Deals and Exclusions

Under active trade deals with the US, levies on wood products from the United Kingdom will not surpass ten percent, while those from the European community and Japan will not go above fifteen percent.

White House Justification

The White House states Trump's import taxes have been put in place "to defend from dangers" to the US's national security and to "bolster industrial production".

Business Apprehensions

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

"These recent levies will create additional challenges for an currently struggling residential sector by additionally increasing building and remodeling expenses," remarked head the group's leader.

Merchant Outlook

Based on Telsey Advisory Group managing director and retail expert Cristina Fernández, merchants will have no choice but to raise prices on imported goods.

Speaking to a media partner recently, she noted sellers would seek not to hike rates too much prior to the festive period, but "they are unable to accommodate thirty percent taxes on alongside other tariffs that are currently active".

"They will need to shift expenses, probably in the guise of a double-digit price increase," she added.

Retail Leader Reaction

Last month Scandinavian furniture giant the company commented the levies on imported furnishings render conducting commerce "tougher".

"The levies are impacting our company similarly to fellow businesses, and we are attentively observing the changing scenario," the firm stated.