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A series of new United States tariffs targeting imported cabinet units, vanities, wood products, and select upholstered furniture are now in effect.

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

Import Duty Percentages and Future Increases

A twenty-five percent duty will also apply on foreign-made kitchen cabinets and bathroom vanities – escalating to 50% on 1 January – while a twenty-five percent tariff on upholstered wooden furniture is scheduled to grow to 30%, except if updated trade deals get finalized.

Donald Trump has pointed to the need to safeguard US manufacturers and security considerations for the action, but some in the industry worry the duties could increase residential prices and lead homeowners put off house remodeling.

Defining Tariffs

Import taxes are taxes on foreign products commonly imposed as a share of a good's value and are paid to the American authorities by firms importing the products.

These companies may pass some or all of the increased charge on to their customers, which in this case means typical American consumers and further domestic companies.

Previous Import Tax Strategies

The president's tariff policies have been a central element of his current administration in the White House.

Donald Trump has previously imposed industry-focused tariffs on steel, copper, light metal, automobiles, and vehicle components.

Effect on Canada

The additional global ten percent levies on wood materials implies the product from the northern neighbor – the major international source worldwide and a major US supplier – is now tariffed at above 45 percent.

There is already a aggregate thirty-five point sixteen percent American offsetting and anti-dumping duties placed on nearly all northern industry players as part of a long-running dispute over the product between the both nations.

Trade Deals and Exemptions

Under active bilateral pacts with the United States, duties on wood products from the United Kingdom will not surpass 10%, while those from the European community and Japanese nation will not surpass fifteen percent.

Administration Justification

The executive branch states the president's duties have been put in place "to protect against dangers" to the United States' national security and to "bolster factory output".

Sector Apprehensions

But the Residential Construction Group commented in a statement in late September that the recent duties could escalate housing costs.

"These new tariffs will generate additional obstacles for an currently struggling homebuilding industry by additionally increasing development and upgrade charges," remarked head Buddy Hughes.

Retailer Perspective

According to Telsey Advisory Group top official and senior retail analyst the expert, retailers will have no choice but to raise prices on imported goods.

Speaking to a broadcasting network last month, she said sellers would try not to increase costs excessively prior to the year-end shopping, but "they are unable to accommodate 30% duties on top of previous levies that are currently active".

"They must transfer pricing, almost certainly in the shape of a two-figure cost hike," she continued.

Ikea Response

Last month Scandinavian retail major the company said the tariffs on imported furnishings make conducting commerce "more difficult".

"These duties are influencing our company similarly to additional firms, and we are closely monitoring the evolving situation," the enterprise remarked.