🔗 Share this article

Several fresh US tariffs targeting imported cabinet units, bathroom vanities, lumber, and certain furnished seating have been implemented.

As per a executive order signed by President Donald Trump recently, a ten percent import tax on softwood lumber foreign shipments was activated this Tuesday.

Import Duty Percentages and Upcoming Changes

A 25% levy will also apply on foreign-made kitchen cabinets and bathroom vanities – escalating to fifty percent on the first of January – while a 25% tariff on upholstered wooden furniture will increase to 30%, provided that no updated trade deals are reached.

The President has pointed to the necessity to protect American producers and national security concerns for the decision, but some in the industry are concerned the duties could increase housing costs and lead consumers put off house remodeling.

Defining Tariffs

Import taxes are charges on foreign products commonly applied as a percentage of a good's price and are paid to the American authorities by companies bringing in the products.

These firms may shift part or the whole of the increased charge on to their clients, which in this instance means ordinary Americans and further domestic companies.

Past Tariff Policies

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

Donald Trump has earlier enacted targeted duties on steel, metallic element, light metal, vehicles, and auto parts.

Consequences for Canadian Producers

The additional global ten percent duties on softwood lumber signifies the commodity from the northern neighbor – the second largest producer worldwide and a significant American provider – is now dutied at above 45 percent.

There is already a combined 35.16% US countervailing and trade remedy levies applied on nearly all Canadian producers as part of a long-running disagreement over the item between the both nations.

Bilateral Pacts and Exemptions

In accordance with current trade deals with the America, tariffs on lumber items from the Britain will not go beyond ten percent, while those from the European community and Japanese nation will not surpass 15%.

Official Rationale

The White House states Donald Trump's duties have been put in place "to protect against risks" to the US's national security and to "bolster industrial production".

Industry Apprehensions

But the National Association of Homebuilders commented in a announcement in last month that the fresh tariffs could raise residential construction prices.

"These recent levies will generate additional headwinds for an already challenged residential sector by further raising construction and renovation costs," said head the association's chairman.

Seller Viewpoint

As per an advisory firm managing director and market analyst the analyst, retailers will have little option but to increase costs on imported goods.

In comments to a media partner recently, she stated sellers would try not to hike rates excessively prior to the festive period, but "they cannot withstand thirty percent tariffs on in addition to existing duties that are already in place".

"They must pass through costs, almost certainly in the form of a double-digit cost hike," she added.

Furniture Giant Reaction

Recently Scandinavian home furnishings leader the company said the duties on overseas home goods cause doing business "tougher".

"The tariffs are affecting our operations similarly to fellow businesses, and we are closely monitoring the developing circumstances," the enterprise remarked.