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Several new US tariffs targeting foreign-sourced kitchen cabinets, bathroom vanities, wood products, and specific furnished seating have come into force.

Following a executive order authorized by President Donald Trump recently, a ten percent import tax on softwood lumber imports took effect on Tuesday.

Tariff Rates and Upcoming Changes

A twenty-five percent tariff is also imposed on imported kitchen cabinets and bathroom vanities – rising to fifty percent on 1 January – while a twenty-five percent tariff on upholstered wooden furniture is set to rise to thirty percent, except if fresh commercial pacts get agreed upon.

Trump has pointed to the need to safeguard US manufacturers and defense interests for the move, but some in the industry fear the tariffs could increase home expenses and cause customers postpone residential upgrades.

Defining Import Taxes

Tariffs are levies on imported goods typically applied as a share of a product's price and are paid to the federal administration by firms importing the items.

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

Earlier Tariff Policies

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

Donald Trump has earlier enacted targeted taxes on steel, metallic element, light metal, cars, and car pieces.

Effect on Canadian Producers

The supplementary global ten percent levies on wood materials implies the material from the Canadian nation – the number two global supplier globally and a key US supplier – is now dutied at above 45 percent.

There is currently a total 35.16% American offsetting and anti-dumping duties applied on nearly all northern industry players as part of a decades-long dispute over the item between the both nations.

Trade Deals and Exemptions

In accordance with active commercial agreements with the United States, tariffs on timber goods from the UK will not go beyond ten percent, while those from the European community and Japan will not go above fifteen percent.

White House Explanation

The executive branch claims the president's import taxes have been put in place "to protect against threats" to the United States' national security and to "strengthen industrial production".

Business Apprehensions

But the Residential Construction Group commented in a statement in late September that the recent duties could escalate residential construction prices.

"These new tariffs will create extra challenges for an currently struggling housing market by additionally increasing construction and renovation costs," remarked leader the association's chairman.

Retailer Viewpoint

As per an advisory firm senior executive and retail expert the expert, retailers will have few alternatives but to raise prices on overseas items.

Speaking to a broadcasting network recently, she noted sellers would try not to raise prices too much ahead of the festive period, but "they cannot withstand 30% taxes on top of existing duties that are currently active".

"They must shift costs, probably in the guise of a significant price increase," she remarked.

Ikea Reaction

Recently Swedish retail major the retailer said the levies on imported furnishings make operating "harder".

"The tariffs are affecting our business like additional firms, and we are carefully watching the evolving situation," the company said.