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A series of fresh US import duties targeting imported kitchen cabinets, bathroom vanities, wood products, and specific upholstered furniture have been implemented.

Following a executive order signed by President Donald Trump last month, a 10% duty on softwood lumber imports came into play on Tuesday.

Import Duty Percentages and Future Increases

A 25% duty will also apply on foreign-made cabinet units and bathroom vanities – rising to fifty percent on 1 January – while a 25% tariff on wooden seating with fabric will increase to thirty percent, unless updated trade deals get finalized.

Trump has referenced the need to safeguard US manufacturers and defense interests for the decision, but some in the industry fear the tariffs could raise residential prices and cause consumers put off home renovations.

Explaining Customs Duties

Tariffs are levies on foreign products usually applied as a portion of a good's cost and are remitted to the federal administration by businesses bringing in the goods.

These enterprises may shift part or the whole of the extra cost on to their customers, which in this case means typical American consumers and further domestic companies.

Past Tariff Policies

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

Trump has previously imposed sector-specific taxes on metal, copper, light metal, vehicles, and vehicle components.

Effect on Canada

The extra global ten percent duties on wood materials implies the commodity from the Canadian nation – the number two global supplier worldwide and a significant American provider – is now tariffed at over forty-five percent.

There is currently a total thirty-five point sixteen percent American countervailing and anti-dumping duties applied on most Canadian producers as part of a years-old disagreement over the commodity between the both nations.

Trade Deals and Exemptions

Under active bilateral pacts with the US, levies on timber goods from the United Kingdom will not surpass ten percent, while those from the European Union and Japanese nation will not exceed 15%.

White House Justification

The presidential administration says the president's import taxes have been put in place "to protect against risks" to the US's homeland defense and to "enhance manufacturing".

Business Apprehensions

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

"These recent levies will generate additional headwinds for an already challenged homebuilding industry by additionally increasing development and upgrade charges," stated leader Buddy Hughes.

Seller Perspective

As per a consulting group senior executive and retail expert the expert, merchants will have no choice but to hike rates on foreign products.

Speaking to a broadcasting network last month, she said sellers would try not to increase costs drastically prior to the year-end shopping, but "they are unable to accommodate 30% duties on in addition to other tariffs that are presently enforced".

"They must transfer costs, almost certainly in the guise of a significant price increase," she continued.

Retail Leader Reaction

In the previous month Swedish home furnishings leader Ikea said the levies on overseas home goods cause doing business "harder".

"The tariffs are affecting our company similarly to fellow businesses, and we are closely monitoring the developing circumstances," the firm said.