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A series of new US tariffs targeting foreign-sourced cabinet units, vanities, wood products, and certain furnished seating have come into force.

Following a presidential directive authorized by Chief Executive Donald Trump last month, a ten percent tariff on wood materials foreign shipments was activated starting Tuesday.

Tariff Rates and Upcoming Changes

A 25% duty will also apply on imported cabinet units and bathroom vanities – rising to fifty percent on January 1st – while a twenty-five percent tariff on wooden seating with fabric is scheduled to grow to thirty percent, provided that no new trade agreements get finalized.

The President has cited the need to shield domestic industries and security considerations for the move, but various industry players are concerned the taxes could increase housing costs and make homeowners postpone home renovations.

Understanding Tariffs

Tariffs are levies on imported goods usually charged as a percentage of a good's value and are paid to the US government by firms importing the products.

These firms may transfer a portion or the entirety of the additional expense on to their customers, which in this instance means everyday US citizens and additional American firms.

Earlier Tariff Policies

The president's tariff policies have been a key feature of his second term in the executive office.

The president has previously imposed sector-specific tariffs on metal, copper, aluminium, vehicles, and car pieces.

Consequences for Northern Neighbor

The additional global 10% duties on wood materials means the product from Canada – the major international source worldwide and a significant domestic source – is now dutied at above 45 percent.

There is currently a total thirty-five point sixteen percent American countervailing and anti-dumping tariffs imposed on most Canada-based manufacturers as part of a decades-long conflict over the product between the neighboring nations.

Commercial Agreements and Exclusions

In accordance with active commercial agreements with the US, duties on timber goods from the Britain will not go beyond ten percent, while those from the European community and Japanese nation will not surpass fifteen percent.

Administration Justification

The executive branch claims Donald Trump's import taxes have been put in place "to defend from threats" to the US's domestic security and to "strengthen manufacturing".

Business Worries

But the National Association of Homebuilders stated in a statement in the end of September that the fresh tariffs could escalate housing costs.

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

Seller Outlook

As per Telsey Advisory Group senior executive and market analyst the expert, retailers will have no choice but to raise prices on imported goods.

Speaking to a news outlet last month, she said sellers would try not to increase costs too much prior to the year-end shopping, but "they cannot withstand 30% taxes on alongside existing duties that are presently enforced".

"They will need to shift pricing, probably in the guise of a significant rate rise," she remarked.

Ikea Response

Last month Swedish retail major the company stated the tariffs on furniture imports render conducting commerce "harder".

"The tariffs are influencing our company like other companies, and we are attentively observing the evolving situation," the firm remarked.