🔗 Share this article

Several recently announced US tariffs targeting foreign-sourced cabinet units, bathroom vanities, wood products, and specific upholstered furniture have been implemented.

Under a presidential directive enacted by Chief Executive Donald Trump recently, a ten percent duty on soft timber imports came into play on Tuesday.

Tariff Rates and Future Increases

A twenty-five percent duty will also apply on imported cabinet units and bathroom vanities – escalating to 50% on 1 January – while a twenty-five percent import tax on wooden seating with fabric is set to rise to thirty percent, provided that no fresh commercial pacts are reached.

The President has pointed to the imperative to shield American producers and national security concerns for the move, but various industry players are concerned the tariffs could increase housing costs and cause homeowners postpone house remodeling.

Understanding Tariffs

Tariffs are taxes on foreign products usually applied as a share of a item's cost and are paid to the US government by companies shipping in the goods.

These enterprises may shift part or the whole of the increased charge on to their buyers, which in this case means everyday US citizens and further domestic companies.

Earlier Import Tax Strategies

The chief executive's tariff policies have been a key feature of his latest term in the White House.

Donald Trump has earlier enacted targeted tariffs on metal, metallic element, aluminium, vehicles, and auto parts.

Consequences for Canada

The supplementary global ten percent levies on soft timber implies the commodity from Canada – the second largest producer internationally and a significant US supplier – is now dutied at over forty-five percent.

There is currently a aggregate 35.16% US offsetting and trade remedy levies imposed on nearly all Canadian producers as part of a long-running dispute over the item between the both nations.

Commercial Agreements and Limitations

As part of active commercial agreements with the America, levies on lumber items from the United Kingdom will not surpass ten percent, while those from the European community and Japanese nation will not surpass fifteen percent.

White House Explanation

The White House claims Donald Trump's tariffs have been enacted "to defend from threats" to the United States' domestic security and to "strengthen industrial production".

Industry Concerns

But the Residential Construction Group stated in a announcement in last month that the new levies could escalate housing costs.

"These recent levies will produce further obstacles for an presently strained housing market by even more elevating development and upgrade charges," said head the group's leader.

Merchant Viewpoint

As per a consulting group senior executive and market analyst Cristina Fernández, retailers will have little option but to raise prices on imported goods.

During an interview with a news outlet in the previous month, she stated retailers would try not to hike rates drastically prior to the festive period, but "they cannot withstand thirty percent tariffs on alongside previous levies that are currently active".

"They will need to transfer expenses, likely in the shape of a double-digit price increase," she added.

Ikea Reaction

Last month Scandinavian home furnishings leader the retailer stated the duties on imported furnishings render conducting commerce "more difficult".

"The levies are impacting our company similarly to fellow businesses, and we are attentively observing the developing circumstances," the enterprise remarked.