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A series of new US levies targeting foreign-sourced kitchen cabinets, vanities, lumber, and certain upholstered furniture have come into force.

Under a executive order authorized by Chief Executive Donald Trump last month, a ten percent duty on soft timber foreign shipments was activated this Tuesday.

Tariff Rates and Future Increases

A 25% tariff will also apply on imported kitchen cabinets and bathroom vanities – rising to 50% on 1 January – while a twenty-five percent import tax on upholstered wooden furniture is set to rise to thirty percent, except if updated trade deals get finalized.

Trump has referenced the necessity to protect US manufacturers and defense interests for the move, but various industry players are concerned the tariffs could increase housing costs and cause homeowners delay house remodeling.

Defining Import Taxes

Tariffs are charges on imported goods commonly applied as a percentage of a item's value and are paid to the federal administration by businesses bringing in the products.

These companies may pass some or all of the extra cost on to their customers, which in this case means ordinary Americans and further domestic companies.

Earlier Tariff Policies

The leader's duty approaches have been a prominent aspect of his second term in the White House.

The president has before implemented sector-specific taxes on steel, metallic element, light metal, cars, and auto parts.

Effect on Canada

The supplementary international ten percent levies on soft timber signifies the product from the northern neighbor – the number two global supplier internationally and a major US supplier – is now dutied at over forty-five percent.

There is currently a aggregate thirty-five point sixteen percent US countervailing and trade remedy levies applied on nearly all Canada-based manufacturers as part of a decades-long conflict over the product between the both nations.

Commercial Agreements and Exemptions

In accordance with existing trade deals with the United States, duties on wood products from the Britain will not surpass ten percent, while those from the European Union and Japan will not exceed fifteen percent.

Official Justification

The presidential administration claims Trump's tariffs have been implemented "to protect against dangers" to the America's domestic security and to "enhance manufacturing".

Sector Concerns

But the National Association of Homebuilders commented in a release in last month that the fresh tariffs could increase homebuilding expenses.

"These fresh duties will produce additional challenges for an currently struggling residential sector by additionally increasing building and remodeling expenses," remarked leader the association's chairman.

Seller Outlook

According to Telsey Advisory Group senior executive and retail expert the analyst, retailers will have no choice but to increase costs on foreign products.

In comments to a media partner in the previous month, she said stores would attempt not to raise prices drastically ahead of the year-end shopping, but "they cannot withstand thirty percent taxes on alongside other tariffs that are currently active".

"They will need to shift expenses, almost certainly in the guise of a double-digit cost hike," she added.

Ikea Response

Recently Swedish furniture giant Ikea stated the duties on overseas home goods render doing business "more difficult".

"The tariffs are impacting our operations similarly to additional firms, and we are carefully watching the evolving situation," the enterprise remarked.