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Several fresh American import duties targeting imported cabinet units, bathroom vanities, wood products, and select furnished seating are now in effect.

As per a proclamation enacted by Chief Executive Donald Trump in the previous month, a 10% import tax on softwood lumber foreign shipments was activated starting Tuesday.

Tariff Rates and Future Increases

A 25% levy is also imposed on imported cabinet units and vanities – escalating to 50% on the first of January – while a 25% import tax on wooden seating with fabric will increase to thirty percent, except if fresh commercial pacts get agreed upon.

Donald Trump has pointed to the imperative to safeguard domestic industries and defense interests for the decision, but various industry players are concerned the taxes could raise residential prices and lead consumers delay residential upgrades.

Defining Customs Duties

Import taxes are taxes on imported goods usually charged as a share of a item's price and are remitted to the federal administration by companies importing the items.

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

Earlier Duty Approaches

The chief executive's import tax strategies have been a central element of his latest term in the executive office.

Donald Trump has before implemented targeted taxes on metal, copper, aluminium, vehicles, and car pieces.

Consequences for Canadian Producers

The additional global ten percent tariffs on wood materials means the material from the northern neighbor – the number two global supplier globally and a major domestic source – is now taxed at more than 45%.

There is currently a total 35.16% US offsetting and anti-dumping duties placed on the majority of Canadian producers as part of a decades-long conflict over the item between the two countries.

Bilateral Pacts and Exemptions

As part of active commercial agreements with the US, levies on lumber items from the Britain will not go beyond ten percent, while those from the European Union and Japan will not surpass fifteen percent.

Administration Justification

The White House says Trump's import taxes have been enacted "to defend from risks" to the United States' homeland defense and to "strengthen industrial production".

Sector Apprehensions

But the Homebuilders Association said in a release in late September that the new levies could increase residential construction prices.

"These recent levies will create further challenges for an currently struggling housing market by additionally increasing building and remodeling expenses," said chairman Buddy Hughes.

Merchant Perspective

According to an advisory firm managing director and senior retail analyst Cristina Fernández, merchants will have no choice but to increase costs on overseas items.

During an interview with a news outlet in the previous month, she stated stores would attempt not to increase costs drastically before the festive period, but "they cannot withstand 30% tariffs on alongside existing duties that are presently enforced".

"They must transfer pricing, almost certainly in the form of a double-digit cost hike," she continued.

Furniture Giant Response

Recently Swedish furniture giant the retailer stated the levies on furniture imports render operating "harder".

"These duties are affecting our company in the same way as other companies, and we are carefully watching the developing circumstances," the firm said.