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Several new US tariffs targeting imported cabinet units, bathroom vanities, timber, and specific upholstered furniture have come into force.

As per a proclamation authorized by President Donald Trump last month, a 10% duty on soft timber foreign shipments was activated this Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent levy will also apply on imported cabinet units and vanities – escalating to 50% on the first of January – while a twenty-five percent import tax on upholstered wooden furniture is scheduled to grow to 30%, unless updated trade deals get finalized.

Trump has cited the necessity to protect American producers and security considerations for the action, but some in the industry worry the duties could raise residential prices and make homeowners postpone residential upgrades.

Understanding Tariffs

Tariffs are levies on imported goods typically imposed as a percentage of a good's value and are submitted to the federal administration by businesses bringing in the goods.

These companies may shift part or the whole of the extra cost on to their clients, which in this instance means everyday US citizens and other US businesses.

Previous Duty Approaches

The chief executive's duty approaches have been a key feature of his current administration in the White House.

Donald Trump has previously imposed targeted tariffs on steel, metallic element, light metal, automobiles, and auto parts.

Consequences for Canadian Producers

The additional international 10% levies on wood materials implies the commodity from the Canadian nation – the second largest producer worldwide and a major American provider – is now taxed at above 45 percent.

There is currently a total 35.16% American countervailing and anti-dumping tariffs imposed on nearly all Canadian producers as part of a decades-long disagreement over the item between the two countries.

Commercial Agreements and Exemptions

In accordance with current bilateral pacts with the US, duties on wood products from the UK will not go beyond ten percent, while those from the EU bloc and Japanese nation will not go above fifteen percent.

Administration Explanation

The executive branch states Donald Trump's import taxes have been put in place "to defend from dangers" to the US's national security and to "bolster industrial production".

Industry Concerns

But the National Association of Homebuilders commented in a announcement in late September that the recent duties could raise homebuilding expenses.

"These fresh duties will generate extra challenges for an currently struggling residential sector by further raising construction and renovation costs," said leader Buddy Hughes.

Merchant Outlook

Based on a consulting group managing director and senior retail analyst Cristina Fernández, merchants will have no choice but to raise prices on overseas items.

During an interview with a news outlet last month, she said sellers would try not to hike rates too much ahead of the holiday season, but "they cannot withstand thirty percent duties on top of existing duties that are presently enforced".

"They'll have to shift pricing, probably in the guise of a double-digit rate rise," she remarked.

Furniture Giant Response

Last month Swedish retail major the company commented the levies on furniture imports make operating "harder".

"These duties are affecting our business in the same way as additional firms, and we are carefully watching the changing scenario," the company stated.