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A series of new US import duties targeting imported cabinet units, bathroom vanities, timber, and certain furnished seating are now in effect.

As per a executive order signed by President Donald Trump last month, a 10% tariff on softwood lumber foreign shipments was activated starting Tuesday.

Tariff Rates and Upcoming Changes

A 25% levy is likewise enforced on imported cabinet units and bathroom vanities – escalating to 50% on the first of January – while a 25% import tax on upholstered wooden furniture is set to rise to 30%, except if updated trade deals are reached.

Donald Trump has pointed to the need to safeguard domestic industries and security considerations for the move, but certain sector experts fear the duties could raise housing costs and make consumers postpone home renovations.

Understanding Customs Duties

Customs duties are taxes on foreign products commonly charged as a share of a item's cost and are paid to the federal administration by companies importing the items.

These firms may pass some or all of the increased charge on to their clients, which in this scenario means ordinary Americans and other US businesses.

Earlier Tariff Policies

The leader's tariff policies have been a key feature of his latest term in the presidency.

Trump has earlier enacted sector-specific duties on steel, copper, light metal, vehicles, and auto parts.

Consequences for Canada

The extra international ten percent tariffs on soft timber signifies the material from Canada – the second largest producer internationally and a key domestic source – is now dutied at above 45 percent.

There is currently a combined 35.16% American countervailing and trade remedy levies imposed on the majority of Canada-based manufacturers as part of a decades-long dispute over the item between the neighboring nations.

Commercial Agreements and Exemptions

Under current trade deals with the United States, duties on wood products from the UK will not exceed 10%, while those from the EU bloc and Japanese nation will not go above 15%.

Official Explanation

The White House says the president's import taxes have been implemented "to defend from dangers" to the America's homeland defense and to "enhance industrial production".

Industry Concerns

But the Homebuilders Association stated in a announcement in the end of September that the new levies could raise housing costs.

"These new tariffs will create additional challenges for an already challenged homebuilding industry by further raising construction and renovation costs," stated leader the association's chairman.

Retailer Outlook

Based on a consulting group managing director and market analyst Cristina Fernández, stores will have little option but to hike rates on overseas items.

In comments to a broadcasting network recently, she noted sellers would seek not to hike rates too much prior to the festive period, but "they can't absorb 30% tariffs on in addition to existing duties that are currently active".

"They will need to pass through pricing, likely in the shape of a double-digit cost hike," she remarked.

Retail Leader Response

In the previous month Swedish home furnishings leader Ikea stated the duties on furniture imports render operating "more difficult".

"The levies are affecting our operations similarly to fellow businesses, and we are closely monitoring the developing circumstances," the enterprise stated.