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Multiple new US levies targeting foreign-sourced kitchen cabinets, bathroom vanities, wood products, and select furnished seating have come into force.

As per a executive order signed by Chief Executive Donald Trump last month, a 10% import tax on softwood lumber foreign shipments came into play on Tuesday.

Import Duty Percentages and Upcoming Changes

A twenty-five percent duty will also apply on imported kitchen cabinets and vanities – rising to 50% on the first of January – while a twenty-five percent import tax on upholstered wooden furniture is set to rise to 30%, unless fresh commercial pacts are reached.

Donald Trump has pointed to the necessity to shield US manufacturers and defense interests for the move, but some in the industry are concerned the tariffs could raise housing costs and make customers postpone home renovations.

Defining Tariffs

Import taxes are charges on foreign products commonly imposed as a share of a product's value and are paid to the US government by companies bringing in the items.

These companies may shift part or the whole of the extra cost on to their buyers, which in this instance means everyday US citizens and further domestic companies.

Earlier Duty Approaches

The president's import tax strategies have been a prominent aspect of his second term in the presidency.

Donald Trump has previously imposed targeted tariffs on metal, metallic element, aluminium, cars, and auto parts.

Consequences for Canada

The extra global ten percent duties on soft timber signifies the commodity from the Canadian nation – the major international source worldwide and a key domestic source – is now taxed at above 45 percent.

There is already a total 35.16% American offsetting and trade remedy levies applied on most northern industry players as part of a decades-long disagreement over the item between the neighboring nations.

Commercial Agreements and Limitations

Under active commercial agreements with the America, tariffs on timber goods from the UK will not surpass ten percent, while those from the European community and Japan will not surpass fifteen percent.

Official Justification

The executive branch states Trump's duties have been implemented "to guard against risks" to the United States' domestic security and to "enhance industrial production".

Industry Apprehensions

But the Homebuilders Association stated in a statement in the end of September that the fresh tariffs could raise homebuilding expenses.

"These fresh duties will produce extra challenges for an already challenged residential sector by further raising construction and renovation costs," remarked leader the association's chairman.

Merchant Perspective

Based on an advisory firm managing director and senior retail analyst the analyst, stores will have little option but to increase costs on imported goods.

Speaking to a broadcasting network last month, she noted retailers would try not to hike rates excessively prior to the festive period, but "they cannot withstand thirty percent duties on top of previous levies that are already in place".

"They'll have to pass through costs, probably in the shape of a double-digit cost hike," she remarked.

Ikea Reaction

In the previous month Swedish furniture giant the retailer commented the tariffs on overseas home goods cause operating "more difficult".

"These duties are affecting our company in the same way as additional firms, and we are closely monitoring the developing circumstances," the enterprise stated.