Recently Enforced Trump Import Taxes on Cabinet Units, Timber, and Furniture Take Effect

A series of recently announced United States levies targeting imported cabinet units, bathroom vanities, timber, and specific upholstered furniture have come into force.

Following a proclamation signed by Chief Executive Donald Trump recently, a ten percent tariff on softwood lumber imports took effect starting Tuesday.

Tariff Rates and Upcoming Changes

A 25% tariff is likewise enforced on imported kitchen cabinets and bathroom vanities – rising to 50% on the first of January – while a twenty-five percent tariff on upholstered wooden furniture is set to rise to 30%, except if new trade agreements get finalized.

Trump has pointed to the need to protect domestic industries and national security concerns for the action, but some in the industry are concerned the taxes could elevate residential prices and cause homeowners put off house remodeling.

Explaining Import Taxes

Tariffs are taxes on imported goods typically charged as a percentage of a good's cost and are submitted to the US government by companies importing the items.

These companies may transfer a portion or the entirety of the additional expense on to their clients, which in this case means typical American consumers and additional American firms.

Earlier Import Tax Strategies

The president's duty approaches have been a key feature of his current administration in the executive office.

The president has before implemented targeted duties on steel, copper, aluminium, cars, and vehicle components.

Effect on Canada

The additional international 10% duties on wood materials means the product from the northern neighbor – the second largest producer worldwide and a significant US supplier – is now tariffed at over forty-five percent.

There is already a combined 35.16% US countervailing and anti-dumping duties imposed on the majority of Canadian producers as part of a years-old conflict over the commodity between the two countries.

Trade Deals and Exemptions

Under existing trade deals with the US, tariffs on lumber items from the United Kingdom will not exceed ten percent, while those from the European community and Japan will not exceed 15%.

Official Explanation

The executive branch claims Trump's tariffs have been put in place "to protect against risks" to the US's domestic security and to "bolster manufacturing".

Business Concerns

But the Homebuilders Association said in a release in late September that the recent duties could raise housing costs.

"These recent levies will create additional headwinds for an already challenged residential sector by additionally increasing development and upgrade charges," remarked leader Buddy Hughes.

Seller Viewpoint

According to Telsey Advisory Group managing director and senior retail analyst the expert, retailers will have few alternatives but to hike rates on foreign products.

In comments to a broadcasting network last month, she said retailers would try not to hike rates too much ahead of the holiday season, but "they can't absorb thirty percent duties on in addition to previous levies that are already in place".

"They will need to pass through pricing, probably in the form of a significant price increase," she continued.

Ikea Statement

In the previous month Scandinavian furniture giant Ikea said the tariffs on imported furnishings make conducting commerce "tougher".

"These duties are impacting our business in the same way as fellow businesses, and we are closely monitoring the changing scenario," the company remarked.