🔗 Share this article

Multiple new US import duties targeting imported cabinet units, vanities, lumber, and certain upholstered furniture have come into force.

As per a presidential directive enacted by President Donald Trump last month, a ten percent import tax on softwood lumber imports was activated starting Tuesday.

Tariff Rates and Upcoming Changes

A twenty-five percent levy is also imposed on foreign-made kitchen cabinets and bathroom vanities – increasing to fifty percent on 1 January – while a 25% tariff on wooden seating with fabric will increase to 30%, provided that no fresh commercial pacts are reached.

The President has pointed to the need to safeguard domestic industries and national security concerns for the move, but various industry players worry the duties could raise residential prices and make customers postpone house remodeling.

Defining Customs Duties

Customs duties are levies on overseas merchandise typically applied as a portion of a item's cost and are remitted to the federal administration by companies shipping in the items.

These enterprises may pass some or all of the extra cost on to their customers, which in this instance means typical American consumers and additional American firms.

Previous Duty Approaches

The chief executive's tariff policies have been a prominent aspect of his latest term in the executive office.

Trump has previously imposed industry-focused duties on metal, metallic element, aluminium, vehicles, and vehicle components.

Consequences for Northern Neighbor

The supplementary global 10% duties on soft timber implies the product from Canada – the second largest producer globally and a major US supplier – is now tariffed at above 45 percent.

There is currently a total 35.16% American offsetting and trade remedy levies applied on the majority of Canadian producers as part of a long-running conflict over the commodity between the both nations.

Trade Deals and Exemptions

In accordance with existing commercial agreements with the US, levies on lumber items from the Britain will not surpass 10%, while those from the European community and Japanese nation will not exceed fifteen percent.

Official Explanation

The executive branch says Donald Trump's import taxes have been implemented "to defend from dangers" to the US's domestic security and to "strengthen factory output".

Industry Worries

But the National Association of Homebuilders said in a statement in late September that the new levies could increase housing costs.

"These recent levies will produce further obstacles for an presently strained housing market by additionally increasing construction and renovation costs," said chairman Buddy Hughes.

Retailer Perspective

According to Telsey Advisory Group managing director and senior retail analyst the analyst, retailers will have little option but to raise prices on overseas items.

In comments to a news outlet recently, she noted stores would try not to increase costs excessively ahead of the holiday season, but "they cannot withstand 30% duties on alongside existing duties that are already in place".

"They must pass through pricing, probably in the form of a double-digit cost hike," she continued.

Retail Leader Reaction

Last month Scandinavian retail major the retailer commented the tariffs on overseas home goods render doing business "harder".

"The tariffs are affecting our company in the same way as additional firms, and we are attentively observing the developing circumstances," the enterprise stated.