🔗 Share this article

Several recently announced US import duties targeting imported cabinet units, vanities, wood products, and certain furnished seating have come into force.

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

Import Duty Percentages and Future Increases

A 25% levy is also imposed on imported kitchen cabinets and vanities – escalating to 50% on 1 January – while a twenty-five percent tariff on wooden seating with fabric is set to rise to thirty percent, unless updated trade deals get finalized.

The President has cited the need to protect American producers and defense interests for the move, but some in the industry are concerned the duties could raise housing costs and make homeowners postpone home renovations.

Defining Import Taxes

Import taxes are taxes on foreign products commonly imposed as a portion of a item's value and are paid to the federal administration by companies importing the items.

These firms may shift part or the whole of the additional expense on to their clients, which in this instance means everyday US citizens and other US businesses.

Earlier Tariff Policies

The leader's duty approaches have been a key feature of his latest term in the presidency.

Donald Trump has earlier enacted industry-focused tariffs on steel, copper, aluminium, cars, and vehicle components.

Effect on Northern Neighbor

The supplementary international 10% duties on softwood lumber signifies the product from Canada – the major international source worldwide and a significant US supplier – is now taxed at more than 45%.

There is already a combined thirty-five point sixteen percent US countervailing and anti-dumping tariffs applied on the majority of Canadian producers as part of a decades-long dispute over the item between the two countries.

Trade Deals and Exclusions

Under current bilateral pacts with the America, tariffs on timber goods from the UK will not go beyond 10%, while those from the European community and Japanese nation will not go above fifteen percent.

White House Rationale

The White House claims Donald Trump's import taxes have been put in place "to defend from dangers" to the America's homeland defense and to "bolster factory output".

Industry Concerns

But the Homebuilders Association stated in a announcement in the end of September that the recent duties could increase homebuilding expenses.

"These recent levies will generate additional obstacles for an presently strained residential sector by further raising building and remodeling expenses," said chairman the group's leader.

Merchant Perspective

Based on a consulting group managing director and market analyst the analyst, merchants will have no choice but to raise prices on overseas items.

During an interview with a broadcasting network last month, she stated retailers would try not to raise prices drastically before the festive period, but "they can't absorb 30% taxes on top of previous levies that are already in place".

"They'll have to transfer expenses, almost certainly in the guise of a two-figure rate rise," she remarked.

Retail Leader Response

In the previous month Swedish retail major Ikea commented the levies on furniture imports render doing business "more difficult".

"The tariffs are affecting our operations similarly to fellow businesses, and we are attentively observing the developing circumstances," the enterprise stated.