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Several new US import duties targeting foreign-sourced cabinet units, bathroom vanities, timber, and specific upholstered furniture have come into force.

Following a executive order enacted by President Donald Trump last month, a 10% tariff on softwood lumber imports was activated this Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent tariff will also apply on foreign-made kitchen cabinets and vanities – increasing to 50% on 1 January – while a twenty-five percent tariff on wooden seating with fabric will increase to 30%, unless new trade agreements are reached.

Donald Trump has pointed to the need to shield domestic industries and defense interests for the action, but various industry players are concerned the taxes could elevate home expenses and cause customers postpone residential upgrades.

Understanding Customs Duties

Tariffs are taxes on imported goods usually imposed as a percentage of a good's value and are submitted to the US government by companies bringing in the items.

These enterprises may pass some or all of the additional expense on to their buyers, which in this instance means everyday US citizens and further domestic companies.

Previous Import Tax Strategies

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

The president has previously imposed targeted duties on metal, copper, aluminium, automobiles, and auto parts.

Consequences for Canadian Producers

The extra global 10% duties on wood materials signifies the material from Canada – the major international source worldwide and a major US supplier – is now tariffed at more than 45%.

There is presently a combined 35.16% American offsetting and anti-dumping duties applied on the majority of northern industry players as part of a years-old dispute over the commodity between the two countries.

Commercial Agreements and Exclusions

In accordance with existing trade deals with the United States, duties on timber goods from the United Kingdom will not surpass ten percent, while those from the European community and Japanese nation will not go above fifteen percent.

White House Explanation

The executive branch states Donald Trump's import taxes have been enacted "to protect against dangers" to the US's domestic security and to "enhance industrial production".

Business Concerns

But the Residential Construction Group said in a release in late September that the new levies could raise residential construction prices.

"These recent levies will produce extra challenges for an already challenged housing market by even more elevating construction and renovation costs," remarked head the group's leader.

Seller Perspective

According to an advisory firm managing director and market analyst the expert, retailers will have few alternatives but to hike rates on imported goods.

During an interview with a news outlet in the previous month, she noted retailers would attempt not to increase costs drastically prior to the festive period, but "they can't absorb thirty percent tariffs on in addition to other tariffs that are presently enforced".

"They'll have to transfer costs, likely in the form of a double-digit cost hike," she remarked.

Retail Leader Statement

Recently Swedish retail major Ikea said the levies on overseas home goods render operating "more difficult".

"The levies are influencing our company like additional firms, and we are attentively observing the evolving situation," the company said.