🔗 Share this article

A series of new United States levies targeting foreign-sourced kitchen cabinets, bathroom vanities, timber, and select furnished seating have been implemented.

As per a presidential directive signed by President Donald Trump last month, a ten percent duty on wood materials foreign shipments was activated this Tuesday.

Tariff Rates and Future Increases

A twenty-five percent tariff is likewise enforced on foreign-made kitchen cabinets and vanities – escalating to 50% on January 1st – while a 25% tariff on upholstered wooden furniture is scheduled to grow to thirty percent, unless new trade agreements get finalized.

Donald Trump has referenced the need to safeguard US manufacturers and security considerations for the decision, but some in the industry are concerned the duties could raise housing costs and lead customers delay house remodeling.

Defining Import Taxes

Tariffs are levies on foreign products typically charged as a percentage of a good's cost and are submitted to the American authorities by businesses shipping in the goods.

These companies may pass some or all of the additional expense on to their clients, which in this case means typical American consumers and other US businesses.

Past Tariff Policies

The chief executive's tariff policies have been a key feature of his latest term in the White House.

Trump has earlier enacted targeted duties on metal, copper, light metal, vehicles, and vehicle components.

Impact on Canadian Producers

The extra global 10% tariffs on wood materials means the product from Canada – the number two global supplier globally and a key US supplier – is now taxed at over forty-five percent.

There is currently a combined 35.16% American countervailing and trade remedy levies placed on the majority of northern industry players as part of a years-old disagreement over the commodity between the two countries.

Commercial Agreements and Exemptions

In accordance with current commercial agreements with the US, tariffs on timber goods from the UK will not go beyond 10%, while those from the EU bloc and Japanese nation will not surpass fifteen percent.

Administration Explanation

The executive branch states Trump's duties have been implemented "to protect against dangers" to the United States' national security and to "enhance factory output".

Industry Worries

But the Residential Construction Group commented in a release in the end of September that the recent duties could raise housing costs.

"These recent levies will create extra challenges for an already challenged residential sector by additionally increasing building and remodeling expenses," remarked head Buddy Hughes.

Seller Perspective

As per an advisory firm senior executive and market analyst Cristina Fernández, merchants will have no choice but to hike rates on foreign products.

During an interview with a news outlet recently, she said retailers would try not to increase costs excessively ahead of the holiday season, but "they are unable to accommodate thirty percent tariffs on top of existing duties that are already in place".

"They'll have to transfer expenses, likely in the form of a double-digit price increase," she remarked.

Ikea Reaction

Recently Scandinavian furniture giant the retailer stated the levies on imported furnishings render doing business "more difficult".

"The levies are influencing our business like additional firms, and we are carefully watching the changing scenario," the firm stated.