🔗 Share this article Recently Enforced US Presidential Duties on Cabinet Units, Timber, and Furniture Take Effect Multiple new US import duties targeting imported kitchen cabinets, vanities, lumber, and certain furnished seating have come into force. Under a proclamation authorized by Chief Executive Donald Trump in the previous month, a 10% import tax on softwood lumber imports took effect starting Tuesday. Tariff Rates and Upcoming Changes A 25% tariff will also apply on foreign-made cabinet units and bathroom vanities – increasing to 50% on the first of January – while a 25% tariff on upholstered wooden furniture is set to rise to 30%, except if fresh commercial pacts get finalized. Trump has cited the need to protect US manufacturers and defense interests for the action, but various industry players fear the duties could raise home expenses and lead customers delay home renovations. Explaining Import Taxes Customs duties are charges on overseas merchandise typically charged as a percentage of a good's cost and are remitted to the US government by companies importing the goods. These enterprises may pass some or all of the additional expense on to their buyers, which in this scenario means typical American consumers and additional American firms. Previous Tariff Policies The president's tariff policies have been a prominent aspect of his latest term in the presidency. The president has before implemented targeted tariffs on metal, metallic element, light metal, automobiles, and auto parts. Impact on Canadian Producers The extra worldwide ten percent tariffs on softwood lumber implies the material from the Canadian nation – the major international source globally and a major domestic source – is now taxed at above 45 percent. There is currently a combined 35.16% American countervailing and anti-dumping duties placed on most northern industry players as part of a decades-long dispute over the item between the both nations. Trade Deals and Exclusions As part of existing trade deals with the US, tariffs on timber goods from the Britain will not exceed ten percent, while those from the European Union and Japan will not go above 15%. Official Rationale The executive branch states Trump's import taxes have been implemented "to protect against threats" to the United States' homeland defense and to "strengthen factory output". Business Concerns But the Residential Construction Group said in a announcement in last month that the fresh tariffs could escalate housing costs. "These recent levies will produce further headwinds for an presently strained housing market by even more elevating building and remodeling expenses," said leader the group's leader. Merchant Viewpoint As per an advisory firm managing director and retail expert the analyst, stores will have no choice but to hike rates on foreign products. In comments to a news outlet recently, she stated sellers would attempt not to increase costs drastically before the year-end shopping, but "they can't absorb 30% taxes on in addition to previous levies that are already in place". "They must transfer pricing, likely in the form of a two-figure cost hike," she continued. Ikea Reaction Recently Scandinavian furniture giant Ikea said the duties on imported furnishings make doing business "more difficult". "These duties are impacting our operations similarly to additional firms, and we are carefully watching the developing circumstances," the company said.