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Several new US import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, timber, and select upholstered furniture have come into force.

As per a proclamation enacted by President Donald Trump recently, a 10% tariff on wood materials foreign shipments took effect this Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent duty is also imposed on foreign-made cabinet units and bathroom vanities – rising to 50% on the first of January – while a twenty-five percent import tax on upholstered wooden furniture will increase to 30%, except if fresh commercial pacts are reached.

Trump has pointed to the imperative to shield US manufacturers and security considerations for the decision, but certain sector experts worry the duties could elevate housing costs and make homeowners delay house remodeling.

Understanding Import Taxes

Tariffs are charges on overseas merchandise typically charged as a share of a item's price and are remitted to the US government by companies bringing in the goods.

These enterprises may shift part or the whole of the extra cost on to their clients, which in this scenario means everyday US citizens and other US businesses.

Previous Duty Approaches

The leader's duty approaches have been a central element of his current administration in the White House.

The president has before implemented targeted tariffs on metal, metallic element, aluminium, vehicles, and car pieces.

Consequences for Canada

The extra global 10% duties on soft timber means the material from the northern neighbor – the second largest producer globally and a key American provider – is now tariffed at more than 45%.

There is presently a combined 35.16% US offsetting and anti-dumping tariffs imposed on the majority of northern industry players as part of a long-running dispute over the commodity between the both nations.

Trade Deals and Exclusions

In accordance with existing commercial agreements with the US, duties on wood products from the Britain will not go beyond 10%, while those from the European Union and Japan will not surpass fifteen percent.

Official Justification

The presidential administration claims Donald Trump's duties have been put in place "to guard against risks" to the America's domestic security and to "enhance manufacturing".

Business Concerns

But the National Association of Homebuilders stated in a release in last month that the new levies could increase housing costs.

"These new tariffs will create extra headwinds for an presently strained residential sector by additionally increasing development and upgrade charges," said chairman the association's chairman.

Merchant Viewpoint

According to Telsey Advisory Group managing director and market analyst the expert, stores will have little option but to raise prices on overseas items.

During an interview with a broadcasting network last month, she stated sellers would try not to hike rates excessively ahead of the festive period, but "they can't absorb 30% duties on in addition to other tariffs that are presently enforced".

"They will need to pass through expenses, probably in the guise of a double-digit cost hike," she continued.

Ikea Reaction

Last month Scandinavian furniture giant Ikea stated the levies on furniture imports render operating "more difficult".

"The tariffs are impacting our operations similarly to fellow businesses, and we are carefully watching the changing scenario," the firm remarked.