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A series of recently announced American import duties targeting foreign-sourced kitchen cabinets, vanities, lumber, and certain upholstered furniture have come into force.

Under a presidential directive enacted by President Donald Trump recently, a ten percent duty on softwood lumber imports was activated starting Tuesday.

Import Duty Percentages and Future Increases

A 25% tariff is likewise enforced on foreign-made cabinet units and vanities – increasing to fifty percent on the first of January – while a twenty-five percent import tax on wooden seating with fabric will increase to 30%, provided that no fresh commercial pacts get agreed upon.

Donald Trump has cited the imperative to safeguard US manufacturers and security considerations for the decision, but various industry players fear the tariffs could raise housing costs and lead customers postpone residential upgrades.

Understanding Import Taxes

Import taxes are taxes on imported goods usually charged as a portion of a item's value and are submitted to the American authorities by companies bringing in the products.

These companies may transfer a portion or the entirety of the increased charge on to their customers, which in this instance means everyday US citizens and further domestic companies.

Previous Import Tax Strategies

The president's import tax strategies have been a key feature of his current administration in the executive office.

The president has earlier enacted industry-focused taxes on steel, metallic element, light metal, cars, and car pieces.

Impact on Canada

The additional worldwide ten percent levies on softwood lumber implies the product from Canada – the number two global supplier internationally and a major American provider – is now taxed at above 45 percent.

There is already a total 35.16% US countervailing and anti-dumping duties placed on nearly all Canadian producers as part of a long-running dispute over the item between the both nations.

Commercial Agreements and Limitations

In accordance with current bilateral pacts with the America, tariffs on wood products from the UK will not surpass ten percent, while those from the European Union and Japan will not go above fifteen percent.

White House Justification

The White House states the president's tariffs have been enacted "to defend from threats" to the America's homeland defense and to "strengthen manufacturing".

Business Worries

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

"These new tariffs will produce further obstacles for an currently struggling homebuilding industry by further raising development and upgrade charges," remarked head the association's chairman.

Merchant Viewpoint

According to a consulting group managing director and retail expert the analyst, retailers will have no choice but to hike rates on overseas items.

During an interview with a media partner last month, she said sellers would seek not to raise prices too much before the festive period, but "they can't absorb thirty percent duties on in addition to previous levies that are already in place".

"They will need to transfer pricing, probably in the guise of a two-figure cost hike," she remarked.

Ikea Reaction

Recently Swedish retail major Ikea stated the duties on furniture imports make doing business "harder".

"The tariffs are influencing our operations in the same way as additional firms, and we are attentively observing the evolving situation," the firm remarked.