🔗 Share this article

Several new American tariffs targeting imported kitchen cabinets, bathroom vanities, timber, and specific furnished seating have come into force.

As per a executive order enacted by President Donald Trump in the previous month, a ten percent tariff on soft timber foreign shipments was activated this Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent levy will also apply on foreign-made cabinet units and bathroom vanities – escalating to 50% on 1 January – while a 25% import tax on upholstered wooden furniture will increase to thirty percent, provided that no updated trade deals get agreed upon.

Donald Trump has cited the need to shield American producers and defense interests for the decision, but various industry players fear the taxes could increase housing costs and cause homeowners delay home renovations.

Explaining Import Taxes

Customs duties are levies on imported goods typically charged as a percentage of a item's cost and are paid to the American authorities by businesses bringing in the goods.

These enterprises may shift part or the whole of the increased charge on to their clients, which in this instance means ordinary Americans and further domestic companies.

Previous Import Tax Strategies

The president's import tax strategies have been a key feature of his current administration in the presidency.

Donald Trump has before implemented industry-focused taxes on steel, metallic element, aluminium, vehicles, and car pieces.

Consequences for Canada

The additional international ten percent tariffs on wood materials means the product from Canada – the number two global supplier internationally and a key US supplier – is now taxed at more than 45%.

There is presently a aggregate 35.16% US countervailing and anti-dumping tariffs placed on most Canadian producers as part of a decades-long conflict over the item between the both nations.

Bilateral Pacts and Limitations

As part of existing commercial agreements with the US, levies on wood products from the UK will not exceed 10%, while those from the European community and Japanese nation will not exceed 15%.

White House Rationale

The executive branch claims Donald Trump's tariffs have been enacted "to protect against threats" to the US's domestic security and to "bolster industrial production".

Business Concerns

But the Homebuilders Association stated in a statement in late September that the new levies could escalate residential construction prices.

"These recent levies will generate extra challenges for an already challenged housing market by even more elevating building and remodeling expenses," remarked leader the association's chairman.

Seller Viewpoint

As per a consulting group top official and senior retail analyst Cristina Fernández, merchants will have little option but to increase costs on overseas items.

Speaking to a news outlet last month, she stated retailers would seek not to raise prices excessively before the festive period, but "they cannot withstand thirty percent taxes on in addition to existing duties that are currently active".

"They will need to pass through expenses, almost certainly in the shape of a significant price increase," she added.

Retail Leader Response

Last month Scandinavian retail major the company stated the duties on imported furnishings cause doing business "harder".

"The levies are affecting our business like other companies, and we are closely monitoring the evolving situation," the enterprise remarked.