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Multiple new US tariffs targeting foreign-sourced kitchen cabinets, vanities, lumber, and certain furnished seating have been implemented.

As per a executive order authorized by Chief Executive Donald Trump last month, a 10% import tax on wood materials foreign shipments came into play starting Tuesday.

Import Duty Percentages and Upcoming Changes

A 25% duty will also apply on foreign-made 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 thirty percent, unless fresh commercial pacts get agreed upon.

Donald Trump has cited the imperative to protect domestic industries and security considerations for the decision, but some in the industry fear the tariffs could elevate home expenses and cause customers postpone home renovations.

Explaining Customs Duties

Tariffs are taxes on imported goods usually applied as a percentage of a product's cost and are remitted to the American authorities by firms bringing in the products.

These firms may shift part or the whole of the extra cost on to their customers, which in this instance means everyday US citizens and additional American firms.

Earlier Duty Approaches

The chief executive's duty approaches have been a prominent aspect of his second term in the White House.

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

Consequences for Canada

The supplementary international ten percent duties on wood materials implies the commodity from the Canadian nation – the second largest producer globally and a major US supplier – is now taxed at above 45 percent.

There is currently a total 35.16% US countervailing and trade remedy levies imposed on nearly all Canadian producers as part of a long-running dispute over the commodity between the two countries.

Bilateral Pacts and Exemptions

Under current trade deals with the America, duties on timber goods from the UK will not go beyond ten percent, while those from the EU bloc and Japan will not exceed 15%.

White House Justification

The White House says the president's tariffs have been enacted "to defend from risks" to the America's national security and to "strengthen manufacturing".

Business Concerns

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

"These fresh duties will produce extra obstacles for an presently strained housing market by even more elevating development and upgrade charges," said head Buddy Hughes.

Seller Outlook

As per a consulting group senior executive and retail expert Cristina Fernández, stores will have little option but to hike rates on imported goods.

In comments to a media partner last month, she noted retailers would seek not to increase costs drastically before the year-end shopping, but "they are unable to accommodate thirty percent taxes on in addition to existing duties that are presently enforced".

"They will need to pass through expenses, likely in the guise of a two-figure cost hike," she continued.

Retail Leader Response

In the previous month Swedish furniture giant Ikea said the duties on imported furnishings make operating "tougher".

"The levies are influencing our operations like additional firms, and we are attentively observing the changing scenario," the enterprise said.