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A series of new US import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, lumber, and specific upholstered furniture are now in effect.

As per a presidential directive enacted by President Donald Trump last month, a ten percent tariff on softwood lumber imports took effect starting Tuesday.

Import Duty Percentages and Future Increases

A 25% levy will also apply on foreign-made kitchen cabinets and vanities – increasing to fifty percent on 1 January – while a 25% import tax on upholstered wooden furniture is scheduled to grow to thirty percent, except if updated trade deals are reached.

Donald Trump has cited the necessity to safeguard domestic industries and security considerations for the action, but various industry players worry the taxes could raise residential prices and cause consumers delay home renovations.

Explaining Customs Duties

Import taxes are taxes on overseas merchandise commonly applied as a share of a item's value and are paid to the federal administration by businesses importing the products.

These enterprises may pass some or all of the additional expense on to their clients, which in this instance means ordinary Americans and further domestic companies.

Previous Tariff Policies

The president's tariff policies have been a key feature of his second term in the executive office.

The president has previously imposed targeted taxes on metal, copper, light metal, automobiles, and auto parts.

Consequences for Canada

The supplementary international 10% duties on wood materials implies the commodity from the northern neighbor – the second largest producer internationally and a major American provider – is now dutied at over forty-five percent.

There is already a total 35.16% US countervailing and trade remedy levies applied on the majority of Canadian producers as part of a decades-long disagreement over the product between the two countries.

Bilateral Pacts and Limitations

Under current trade deals with the US, duties on wood products from the United Kingdom will not exceed 10%, while those from the EU bloc and Japan will not exceed fifteen percent.

Official Justification

The executive branch states Trump's import taxes have been implemented "to defend from risks" to the United States' homeland defense and to "bolster industrial production".

Business Apprehensions

But the Homebuilders Association commented in a statement in last month that the recent duties could raise homebuilding expenses.

"These recent levies will create extra challenges for an presently strained housing market by further raising development and upgrade charges," stated chairman the association's chairman.

Retailer Outlook

Based on an advisory firm top official and retail expert the expert, retailers will have no choice but to hike rates on foreign products.

Speaking to a broadcasting network in the previous month, she noted sellers would attempt not to increase costs too much prior to the festive period, but "they are unable to accommodate 30% duties on alongside other tariffs that are presently enforced".

"They must shift costs, probably in the shape of a double-digit rate rise," she continued.

Ikea Reaction

In the previous month Swedish furniture giant Ikea commented the levies on furniture imports render conducting commerce "more difficult".

"The levies are affecting our operations in the same way as additional firms, and we are attentively observing the changing scenario," the firm remarked.