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Several new United States levies targeting imported kitchen cabinets, bathroom vanities, timber, and certain furnished seating have come into force.

Following a executive order enacted by Chief Executive Donald Trump recently, a ten percent import tax on soft timber foreign shipments was activated starting Tuesday.

Tariff Rates and Upcoming Changes

A 25% tariff is likewise enforced on foreign-made kitchen cabinets and vanities – rising to 50% on 1 January – while a twenty-five percent import tax on upholstered wooden furniture will increase to 30%, except if fresh commercial pacts get finalized.

The President has pointed to the necessity to protect domestic industries and national security concerns for the move, but certain sector experts worry the duties could raise home expenses and make customers delay residential upgrades.

Explaining Import Taxes

Customs duties are taxes on foreign products typically charged as a share of a good's value and are paid to the federal administration by businesses bringing in the items.

These firms may transfer a portion or the entirety of the extra cost on to their buyers, which in this case means everyday US citizens and additional American firms.

Past Tariff Policies

The leader's import tax strategies have been a key feature of his latest term in the White House.

The president has before implemented targeted taxes on steel, copper, light metal, cars, and auto parts.

Impact on Canada

The supplementary global 10% tariffs on soft timber means the material from the northern neighbor – the major international source worldwide and a major domestic source – is now taxed at more than 45%.

There is presently a total 35.16% US offsetting and anti-dumping tariffs imposed on nearly all Canadian producers as part of a years-old disagreement over the product between the neighboring nations.

Bilateral Pacts and Limitations

In accordance with existing bilateral pacts with the US, tariffs on wood products from the United Kingdom will not go beyond 10%, while those from the EU bloc and Japan will not go above fifteen percent.

White House Justification

The White House claims the president's tariffs have been put in place "to defend from risks" to the US's domestic security and to "strengthen manufacturing".

Industry Concerns

But the Homebuilders Association commented in a statement in last month that the new levies could raise housing costs.

"These new tariffs will produce further challenges for an currently struggling housing market by additionally increasing building and remodeling expenses," said leader Buddy Hughes.

Seller Outlook

According to a consulting group managing director and retail expert Cristina Fernández, retailers will have no choice but to hike rates on imported goods.

In comments to a news outlet recently, she said retailers would try not to increase costs excessively ahead of the festive period, but "they can't absorb 30% tariffs on in addition to existing duties that are currently active".

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

Ikea Reaction

Recently Swedish home furnishings leader the retailer said the tariffs on furniture imports cause operating "more difficult".

"The levies are affecting our business similarly to additional firms, and we are closely monitoring the changing scenario," the company said.