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A series of new American import duties targeting imported cabinet units, bathroom vanities, timber, and specific upholstered furniture have come into force.

Following a presidential directive signed by President Donald Trump in the previous month, a 10% duty on softwood lumber imports came into play this Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent duty is also imposed on imported kitchen cabinets and vanities – rising to fifty percent on the first of January – while a twenty-five percent tariff on upholstered wooden furniture will increase to thirty percent, except if new trade agreements are reached.

Trump has cited the need to protect domestic industries and national security concerns for the move, but some in the industry fear the duties could raise home expenses and make customers put off home renovations.

Defining Customs Duties

Import taxes are charges on overseas merchandise commonly applied as a share of a item's price and are submitted to the federal administration by companies importing the items.

These companies may transfer a portion or the entirety of the increased charge on to their customers, which in this instance means everyday US citizens and further domestic companies.

Past Duty Approaches

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

Donald Trump has previously imposed targeted duties on steel, copper, aluminium, cars, and auto parts.

Impact on Canada

The supplementary worldwide 10% levies on softwood lumber implies the material from the Canadian nation – the major international source internationally and a major domestic source – is now dutied at above 45 percent.

There is already a combined 35.16% US countervailing and trade remedy levies placed on nearly all Canada-based manufacturers as part of a years-old dispute over the commodity between the neighboring nations.

Commercial Agreements and Exclusions

Under existing bilateral pacts with the United States, levies on wood products from the Britain will not exceed 10%, while those from the European community and Japan will not surpass fifteen percent.

Administration Rationale

The executive branch states the president's import taxes have been enacted "to guard against risks" to the US's homeland defense and to "strengthen factory output".

Business Concerns

But the National Association of Homebuilders said in a announcement in late September that the fresh tariffs could escalate residential construction prices.

"These fresh duties will generate further obstacles for an currently struggling housing market by additionally increasing construction and renovation costs," said head the group's leader.

Seller Outlook

According to a consulting group top official and market analyst the analyst, merchants will have no choice but to raise prices on overseas items.

Speaking to a news outlet in the previous month, she stated sellers would attempt not to increase costs drastically prior to the festive period, but "they can't absorb 30% tariffs on alongside existing duties that are presently enforced".

"They must shift pricing, probably in the guise of a two-figure price increase," she continued.

Ikea Reaction

Recently Scandinavian furniture giant Ikea said the duties on imported furnishings cause operating "more difficult".

"The tariffs are influencing our operations similarly to other companies, and we are carefully watching the developing circumstances," the company stated.