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Multiple new US import duties targeting imported cabinet units, vanities, wood products, and select furnished seating are now in effect.

As per a executive order signed by Chief Executive Donald Trump last month, a ten percent import tax on softwood lumber imports came into play starting Tuesday.

Import Duty Percentages and Upcoming Changes

A 25% duty is also imposed on imported kitchen cabinets and vanities – rising to fifty percent on 1 January – while a twenty-five percent import tax on wooden seating with fabric will increase to thirty percent, except if fresh commercial pacts get agreed upon.

The President has cited the need to safeguard domestic industries and security considerations for the action, but various industry players are concerned the duties could raise residential prices and cause customers delay house remodeling.

Defining Customs Duties

Tariffs are charges on imported goods commonly imposed as a share of a good's cost and are remitted to the federal administration by firms shipping in the items.

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

Previous Tariff Policies

The chief executive's tariff policies have been a key feature of his latest term in the presidency.

Donald Trump has earlier enacted sector-specific duties on metal, copper, aluminium, cars, and vehicle components.

Impact on Canada

The extra worldwide 10% tariffs on soft timber means the material from Canada – the number two global supplier internationally and a key US supplier – is now taxed at above 45 percent.

There is already a aggregate 35.16% US offsetting and anti-dumping tariffs applied on most Canadian producers as part of a decades-long dispute over the product between the two countries.

Bilateral Pacts and Exemptions

In accordance with existing bilateral pacts with the United States, duties on wood products from the UK will not go beyond 10%, while those from the EU bloc and Japanese nation will not go above fifteen percent.

White House Justification

The White House states the president's duties have been implemented "to protect against threats" to the America's national security and to "enhance factory output".

Sector Worries

But the Homebuilders Association stated in a announcement in last month that the new levies could increase residential construction prices.

"These fresh duties will create additional headwinds for an already challenged homebuilding industry by even more elevating building and remodeling expenses," said chairman the association's chairman.

Merchant Viewpoint

According to an advisory firm senior executive and market analyst the analyst, retailers will have little option but to hike rates on overseas items.

During an interview with a news outlet last month, she stated stores would attempt not to raise prices drastically before the festive period, but "they can't absorb 30% duties on top of other tariffs that are presently enforced".

"They'll have to transfer pricing, likely in the shape of a double-digit cost hike," she continued.

Furniture Giant Statement

Last month Scandinavian retail major Ikea stated the levies on furniture imports make conducting commerce "tougher".

"The levies are influencing our business like other companies, and we are closely monitoring the changing scenario," the firm remarked.