🔗 Share this article New US Presidential Duties on Kitchen Cabinets, Lumber, and Home Furnishings Are Now Active Multiple recently announced United States import duties targeting foreign-sourced kitchen cabinets, bathroom vanities, timber, and select upholstered furniture have come into force. As per a presidential directive enacted by President Donald Trump in the previous month, a ten percent tariff on softwood lumber foreign shipments came into play on Tuesday. Import Duty Percentages and Future Increases A twenty-five percent tariff will also apply on foreign-made kitchen cabinets and vanities – increasing to 50% on January 1st – while a twenty-five percent tariff on upholstered wooden furniture is set to rise to thirty percent, except if updated trade deals get finalized. Donald Trump has cited the necessity to protect domestic industries and security considerations for the action, but various industry players fear the duties could increase residential prices and make consumers delay house remodeling. Understanding Customs Duties Customs duties are taxes on overseas merchandise usually applied as a percentage of a good's price and are paid to the federal administration by firms importing the goods. These enterprises may pass some or all of the increased charge on to their buyers, which in this scenario means ordinary Americans and further domestic companies. Earlier Import Tax Strategies The president's duty approaches have been a central element of his second term in the White House. Donald Trump has earlier enacted industry-focused taxes on steel, copper, aluminium, cars, and vehicle components. Impact on Canadian Producers The extra worldwide 10% tariffs on soft timber implies the material from the Canadian nation – the number two global supplier globally and a major domestic source – is now taxed at more than 45%. There is already a combined thirty-five point sixteen percent American countervailing and trade remedy levies placed on most northern industry players as part of a decades-long dispute over the product between the both nations. Trade Deals and Exemptions Under existing bilateral pacts with the US, duties on timber goods from the United Kingdom will not exceed ten percent, while those from the European Union and Japan will not surpass fifteen percent. Administration Justification The executive branch says Donald Trump's duties have been enacted "to defend from threats" to the US's domestic security and to "strengthen factory output". Industry Concerns But the National Association of Homebuilders commented in a statement in last month that the recent duties could increase residential construction prices. "These fresh duties will create further obstacles for an currently struggling residential sector by additionally increasing construction and renovation costs," remarked leader Buddy Hughes. Seller Outlook As per Telsey Advisory Group top official and retail expert Cristina Fernández, merchants will have little option but to increase costs on foreign products. In comments to a broadcasting network in the previous month, she said retailers would seek not to hike rates excessively before the holiday season, but "they cannot withstand 30% taxes on alongside existing duties that are currently active". "They'll have to transfer pricing, likely in the shape of a significant rate rise," she remarked. Retail Leader Response Recently Scandinavian retail major Ikea stated the levies on furniture imports cause operating "harder". "These duties are affecting our operations like additional firms, and we are attentively observing the developing circumstances," the firm said.