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Several recently announced US tariffs targeting imported cabinet units, vanities, lumber, and select upholstered furniture have been implemented.

As per a presidential directive signed by President Donald Trump last month, a 10% import tax on softwood lumber foreign shipments was activated starting Tuesday.

Tariff Rates and Upcoming Changes

A 25% duty is also imposed on foreign-made cabinet units and vanities – increasing to 50% on January 1st – while a 25% tariff on wooden seating with fabric will increase to thirty percent, except if fresh commercial pacts get agreed upon.

The President has pointed to the imperative to safeguard US manufacturers and defense interests for the decision, but some in the industry worry the duties could increase housing costs and lead consumers postpone house remodeling.

Defining Customs Duties

Tariffs are taxes on overseas merchandise commonly charged as a portion of a item's cost and are paid to the American authorities by firms shipping in the goods.

These companies may shift part or the whole of the increased charge on to their clients, which in this scenario means typical American consumers and additional American firms.

Previous Tariff Policies

The president's import tax strategies have been a prominent aspect of his latest term in the White House.

Donald Trump has earlier enacted industry-focused tariffs on steel, copper, aluminium, vehicles, and car pieces.

Impact on Northern Neighbor

The extra global ten percent duties on softwood lumber signifies the material from Canada – the number two global supplier internationally and a significant US supplier – is now tariffed at more than 45%.

There is currently a total 35.16% US offsetting and anti-dumping duties placed on nearly all Canada-based manufacturers as part of a decades-long dispute over the product between the neighboring nations.

Commercial Agreements and Exclusions

As part of existing bilateral pacts with the America, levies on wood products from the United Kingdom will not surpass ten percent, while those from the EU bloc and Japan will not surpass 15%.

Official Explanation

The executive branch claims the president's duties have been put in place "to guard against risks" to the America's national security and to "strengthen industrial production".

Business Concerns

But the Residential Construction Group said in a release in the end of September that the fresh tariffs could raise residential construction prices.

"These new tariffs will generate extra challenges for an presently strained housing market by even more elevating building and remodeling expenses," remarked leader the group's leader.

Merchant Perspective

As per a consulting group managing director and senior retail analyst the analyst, retailers will have no choice but to raise prices 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 cannot withstand 30% tariffs on in addition to existing duties that are presently enforced".

"They must pass through expenses, almost certainly in the form of a two-figure cost hike," she added.

Ikea Reaction

Last month Swedish retail major Ikea commented the tariffs on imported furnishings cause operating "harder".

"The levies are influencing our operations in the same way as additional firms, and we are carefully watching the evolving situation," the firm stated.