🔗 Share this article

Multiple recently announced United States levies targeting foreign-sourced kitchen cabinets, bathroom vanities, lumber, and certain furnished seating have been implemented.

Under a presidential directive signed by Chief Executive Donald Trump last month, a ten percent duty on soft timber foreign shipments was activated starting Tuesday.

Tariff Rates and Upcoming Changes

A 25% duty is also imposed on foreign-made kitchen cabinets and vanities – escalating to 50% on 1 January – while a 25% import tax on wooden seating with fabric is set to rise to 30%, unless updated trade deals get agreed upon.

Trump has cited the need to shield American producers and national security concerns for the move, but various industry players worry the taxes could elevate residential prices and make homeowners postpone residential upgrades.

Defining Customs Duties

Import taxes are levies on foreign products usually charged as a portion of a product's value and are remitted to the American authorities by companies importing the products.

These companies may transfer a portion or the entirety of the additional expense on to their customers, which in this case means typical American consumers and other US businesses.

Previous Duty Approaches

The chief executive's import tax strategies have been a central element of his latest term in the presidency.

Donald Trump has before implemented targeted tariffs on steel, copper, aluminium, cars, and auto parts.

Consequences for Northern Neighbor

The supplementary international ten percent duties on wood materials signifies the material from the northern neighbor – the number two global supplier globally and a key domestic source – is now tariffed at above 45 percent.

There is presently a combined 35.16% US countervailing and anti-dumping duties applied on most northern industry players as part of a long-running dispute over the item between the both nations.

Trade Deals and Exclusions

As part of active bilateral pacts with the America, duties on timber goods from the Britain will not surpass ten percent, while those from the European Union and Japan will not exceed 15%.

White House Rationale

The White House claims Donald Trump's import taxes have been enacted "to defend from threats" to the America's national security and to "bolster factory output".

Sector Concerns

But the Homebuilders Association stated in a release in late September that the fresh tariffs could increase homebuilding expenses.

"These new tariffs will create additional headwinds for an presently strained housing market by even more elevating development and upgrade charges," stated leader the association's chairman.

Merchant Perspective

As per an advisory firm senior executive and retail expert the expert, merchants will have little option but to raise prices on foreign products.

Speaking to a broadcasting network last month, she noted stores would attempt not to hike rates excessively before the festive period, but "they can't absorb thirty percent duties on alongside previous levies that are currently active".

"They'll have to shift expenses, likely in the form of a significant cost hike," she continued.

Ikea Reaction

Recently Swedish furniture giant Ikea commented the levies on overseas home goods render doing business "harder".

"These duties are affecting our operations like additional firms, and we are attentively observing the changing scenario," the enterprise stated.