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A series of new United States tariffs targeting imported cabinet units, bathroom vanities, timber, and select upholstered furniture have come into force.

Under a executive order authorized by Chief Executive Donald Trump recently, a 10% import tax on soft timber imports came into play this Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent tariff will also apply on imported cabinet units and vanities – rising to 50% on the first of January – while a twenty-five percent import tax on upholstered wooden furniture will increase to thirty percent, unless updated trade deals get agreed upon.

Donald Trump has cited the need to safeguard US manufacturers and national security concerns for the decision, but various industry players are concerned the tariffs could raise housing costs and cause customers delay residential upgrades.

Explaining Import Taxes

Import taxes are taxes on imported goods usually imposed as a share of a good's cost and are remitted to the federal administration by companies importing the items.

These enterprises may pass some or all of the extra cost on to their customers, which in this scenario means ordinary Americans and further domestic companies.

Past Import Tax Strategies

The leader's tariff policies have been a key feature of his current administration in the White House.

The president has previously imposed industry-focused duties on metal, metallic element, aluminium, vehicles, and car pieces.

Effect on Canadian Producers

The additional worldwide ten percent tariffs on wood materials implies the commodity from the northern neighbor – the major international source globally and a key US supplier – is now dutied at more than 45%.

There is presently a aggregate 35.16% American offsetting and anti-dumping tariffs applied on nearly all Canada-based manufacturers as part of a decades-long conflict over the product between the neighboring nations.

Commercial Agreements and Limitations

Under active trade deals with the US, levies on lumber items from the United Kingdom will not surpass ten percent, while those from the EU bloc and Japanese nation will not exceed 15%.

Administration Explanation

The presidential administration claims the president's tariffs have been enacted "to guard against dangers" to the United States' homeland defense and to "enhance industrial production".

Business Worries

But the Residential Construction Group stated in a release in last month that the new levies could raise homebuilding expenses.

"These fresh duties will produce extra obstacles for an currently struggling homebuilding industry by additionally increasing construction and renovation costs," remarked head Buddy Hughes.

Merchant Perspective

As per a consulting group senior executive and market analyst the expert, retailers will have no choice but to increase costs on imported goods.

In comments to a broadcasting network last month, she noted retailers would try not to increase costs too much prior to the festive period, but "they are unable to accommodate 30% duties on in addition to previous levies that are already in place".

"They must shift expenses, likely in the guise of a double-digit price increase," she continued.

Ikea Reaction

Last month Swedish furniture giant the company commented the levies on imported furnishings cause doing business "tougher".

"These duties are affecting our operations in the same way as additional firms, and we are attentively observing the developing circumstances," the firm remarked.