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A series of new US levies targeting foreign-sourced kitchen cabinets, vanities, wood products, and certain upholstered furniture have come into force.

Following a executive order signed by President Donald Trump in the previous month, a 10% import tax on softwood lumber foreign shipments was activated on Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent tariff is also imposed on imported kitchen cabinets and 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 new trade agreements get finalized.

Trump has cited the necessity to protect domestic industries and national security concerns for the decision, but some in the industry worry the duties could increase residential prices and lead consumers postpone house remodeling.

Understanding Customs Duties

Import taxes are levies on imported goods typically imposed as a percentage of a product's value and are submitted to the American authorities by businesses shipping in the goods.

These companies may transfer a portion or the entirety of the increased charge on to their clients, which in this instance means everyday US citizens and additional American firms.

Past Import Tax Strategies

The chief executive's tariff policies have been a key feature of his current administration in the executive office.

Trump has before implemented targeted duties on steel, metallic element, aluminium, vehicles, and vehicle components.

Impact on Canadian Producers

The extra worldwide ten percent levies on wood materials signifies the material from the northern neighbor – the second largest producer internationally and a key American provider – is now taxed at above 45 percent.

There is currently a total thirty-five point sixteen percent American offsetting and trade remedy levies imposed on most Canadian producers as part of a long-running dispute over the commodity between the two countries.

Bilateral Pacts and Exemptions

In accordance with existing commercial agreements with the US, duties on wood products from the UK will not go beyond 10%, while those from the European community and Japanese nation will not exceed fifteen percent.

White House Explanation

The White House states the president's import taxes have been implemented "to guard against risks" to the America's homeland defense and to "strengthen industrial production".

Industry Apprehensions

But the National Association of Homebuilders commented in a announcement in the end of September that the new levies could increase homebuilding expenses.

"These recent levies will generate extra obstacles for an already challenged housing market by further raising development and upgrade charges," stated head the group's leader.

Merchant Perspective

As per an advisory firm managing director and retail expert the expert, merchants will have few alternatives but to hike rates on foreign products.

In comments to a news outlet in the previous month, she said stores would try not to hike rates excessively ahead of the festive period, but "they are unable to accommodate thirty percent duties on in addition to other tariffs that are currently active".

"They'll have to pass through costs, probably in the shape of a two-figure cost hike," she continued.

Furniture Giant Reaction

Last month Scandinavian furniture giant the retailer commented the duties on overseas home goods render operating "tougher".

"The tariffs are influencing our operations in the same way as fellow businesses, and we are attentively observing the developing circumstances," the company said.