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Several fresh US import duties targeting foreign-sourced cabinet units, vanities, wood products, and certain furnished seating have come into force.

Under a executive order authorized by President Donald Trump recently, a 10% duty on softwood lumber imports was activated on Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent tariff is also imposed on foreign-made cabinet units and bathroom vanities – rising to 50% on 1 January – while a twenty-five percent tariff on upholstered wooden furniture will increase to thirty percent, except if new trade agreements get agreed upon.

Trump has pointed to the necessity to shield domestic industries and security considerations for the action, but various industry players worry the tariffs could increase home expenses and make homeowners put off home renovations.

Explaining Customs Duties

Customs duties are levies on foreign products typically imposed as a share of a product's cost and are remitted to the federal administration by firms bringing in the goods.

These enterprises may transfer a portion or the entirety of the additional expense on to their clients, which in this instance means everyday US citizens and other US businesses.

Previous Import Tax Strategies

The leader's import tax strategies have been a central element of his current administration in the White House.

Trump has before implemented industry-focused tariffs on metal, copper, aluminium, vehicles, and auto parts.

Consequences for Canada

The additional global ten percent levies on wood materials signifies the product from the northern neighbor – the major international source globally and a significant American provider – is now taxed at over forty-five percent.

There is presently a aggregate thirty-five point sixteen percent American offsetting and anti-dumping duties imposed on the majority of northern industry players as part of a years-old dispute over the product between the two countries.

Bilateral Pacts and Exemptions

Under current bilateral pacts with the US, levies on timber goods from the United Kingdom will not go beyond 10%, while those from the European Union and Japan will not surpass 15%.

Official Explanation

The White House claims Donald Trump's duties have been enacted "to protect against dangers" to the US's national security and to "bolster manufacturing".

Sector Worries

But the Homebuilders Association said in a release in last month that the new levies could increase residential construction prices.

"These recent levies will create further headwinds for an currently struggling residential sector by even more elevating construction and renovation costs," remarked chairman the association's chairman.

Seller Viewpoint

Based on Telsey Advisory Group managing director and retail expert the expert, retailers will have little option but to raise prices on foreign products.

In comments to a broadcasting network in the previous month, she said stores would attempt not to raise prices too much prior to the holiday season, but "they cannot withstand 30% duties on alongside previous levies that are already in place".

"They must pass through expenses, likely in the guise of a double-digit price increase," she added.

Ikea Response

Last month Swedish furniture giant Ikea said the levies on overseas home goods make operating "harder".

"The levies are affecting our business in the same way as additional firms, and we are carefully watching the changing scenario," the enterprise said.