🔗 Share this article

A series of recently announced American import duties targeting imported kitchen cabinets, vanities, timber, and specific furnished seating have come into force.

As per a proclamation authorized by Chief Executive Donald Trump last month, a 10% tariff on wood materials imports was activated this Tuesday.

Tariff Rates and Upcoming Changes

A 25% levy will also apply on imported kitchen cabinets and bathroom vanities – increasing to 50% on January 1st – while a twenty-five percent tariff on upholstered wooden furniture will increase to thirty percent, unless fresh commercial pacts get finalized.

Trump has cited the imperative to protect domestic industries and national security concerns for the move, but some in the industry fear the taxes could increase residential prices and make customers delay house remodeling.

Defining Import Taxes

Tariffs are charges on foreign products usually imposed as a share of a product's cost and are remitted to the American authorities by businesses shipping in the products.

These firms may pass some or all of the increased charge on to their buyers, which in this instance means ordinary Americans and additional American firms.

Previous Import Tax Strategies

The president's duty approaches have been a central element of his second term in the White House.

Donald Trump has before implemented industry-focused taxes on metal, metallic element, aluminium, automobiles, and car pieces.

Consequences for Northern Neighbor

The supplementary global ten percent levies on soft timber implies the product from the northern neighbor – the number two global supplier worldwide and a key American provider – is now taxed at above 45 percent.

There is currently a aggregate 35.16% American countervailing and trade remedy levies applied on nearly all northern industry players as part of a long-running dispute over the item between the both nations.

Trade Deals and Exemptions

Under active trade deals with the America, tariffs on wood products from the Britain will not surpass ten percent, while those from the European Union and Japanese nation will not surpass 15%.

White House Rationale

The White House claims the president's import taxes have been implemented "to guard against dangers" to the US's homeland defense and to "bolster factory output".

Business Concerns

But the Residential Construction Group said in a release in last month that the fresh tariffs could increase homebuilding expenses.

"These new tariffs will create additional headwinds for an already challenged residential sector by even more elevating building and remodeling expenses," remarked head the group's leader.

Seller Perspective

Based on a consulting group managing director and market analyst Cristina Fernández, stores will have little option but to raise prices on imported goods.

During an interview with a media partner in the previous month, she said retailers would seek not to raise prices drastically before the festive period, but "they cannot withstand thirty percent taxes on top of existing duties that are already in place".

"They must shift expenses, probably in the guise of a double-digit rate rise," she remarked.

Ikea Response

Last month Swedish furniture giant the retailer commented the duties on furniture imports cause doing business "more difficult".

"The levies are influencing our operations in the same way as other companies, and we are attentively observing the evolving situation," the enterprise stated.