🔗 Share this article

A series of fresh United States import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, wood products, and select furnished seating are now in effect.

As per a proclamation enacted by President Donald Trump in the previous month, a ten percent duty on wood materials foreign shipments took effect this Tuesday.

Tariff Rates and Future Increases

A 25% duty is also imposed on foreign-made kitchen cabinets and bathroom vanities – rising to 50% on January 1st – while a twenty-five percent import tax on upholstered wooden furniture is set to rise to thirty percent, unless new trade agreements are reached.

The President has pointed to the necessity to protect domestic industries and security considerations for the decision, but various industry players are concerned the taxes could increase home expenses and cause customers postpone house remodeling.

Understanding Customs Duties

Import taxes are taxes on foreign products commonly imposed as a percentage of a product's value and are submitted to the US government by businesses importing the products.

These firms may shift part or the whole of the extra cost on to their customers, which in this instance means ordinary Americans and other US businesses.

Past Duty Approaches

The president's tariff policies have been a central element of his latest term in the executive office.

Donald Trump has previously imposed targeted taxes on metal, metallic element, aluminium, cars, and vehicle components.

Impact on Canada

The supplementary international 10% levies on soft timber means the material from the northern neighbor – the second largest producer worldwide and a key US supplier – is now taxed at above 45 percent.

There is already a combined thirty-five point sixteen percent American offsetting and anti-dumping duties imposed on nearly all Canada-based manufacturers as part of a long-running dispute over the commodity between the neighboring nations.

Trade Deals and Exemptions

In accordance with active bilateral pacts with the United States, duties on timber goods from the UK will not go beyond 10%, while those from the European Union and Japanese nation will not go above fifteen percent.

White House Explanation

The presidential administration states Donald Trump's import taxes have been implemented "to protect against dangers" to the US's national security and to "bolster manufacturing".

Industry Apprehensions

But the Residential Construction Group said in a release in last month that the fresh tariffs could increase residential construction prices.

"These new tariffs will create further headwinds for an presently strained residential sector by additionally increasing building and remodeling expenses," stated chairman the group's leader.

Retailer Outlook

As per an advisory firm top official and market analyst Cristina Fernández, stores will have little option but to hike rates on foreign products.

During an interview with a news outlet recently, she said sellers would try not to hike rates too much before the year-end shopping, but "they are unable to accommodate 30% taxes on alongside other tariffs that are currently active".

"They'll have to pass through costs, probably in the shape of a double-digit price increase," she remarked.

Furniture Giant Response

Recently Swedish furniture giant the retailer said the duties on imported furnishings make doing business "tougher".

"The levies are impacting our operations in the same way as other companies, and we are carefully watching the changing scenario," the company said.