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Several fresh American import duties targeting foreign-sourced kitchen cabinets, vanities, wood products, and select upholstered furniture have come into force.

Following a executive order authorized by Chief Executive Donald Trump last month, a ten percent tariff on soft timber foreign shipments took effect on Tuesday.

Tariff Rates and Future Increases

A 25% tariff is also imposed on imported cabinet units and bathroom vanities – rising to fifty percent on 1 January – while a twenty-five percent import tax on upholstered wooden furniture is scheduled to grow to 30%, unless fresh commercial pacts get finalized.

Donald Trump has referenced the necessity to protect domestic industries and security considerations for the move, but various industry players worry the taxes could raise home expenses and cause homeowners delay home renovations.

Explaining Tariffs

Tariffs are charges on imported goods typically charged as a percentage of a good's value and are submitted to the federal administration by businesses shipping in the items.

These companies may shift part or the whole of the extra cost on to their buyers, which in this case means ordinary Americans and further domestic companies.

Earlier Duty Approaches

The president's tariff policies have been a key feature of his current administration in the White House.

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

Effect on Northern Neighbor

The additional international ten percent levies on soft timber signifies the material from the northern neighbor – the major international source worldwide and a significant US supplier – is now taxed at more than 45%.

There is currently a combined 35.16% US countervailing and trade remedy levies placed on most northern industry players as part of a decades-long conflict over the product between the both nations.

Trade Deals and Limitations

Under current commercial agreements with the US, levies on wood products from the United Kingdom will not go beyond ten percent, while those from the European Union and Japanese nation will not surpass 15%.

White House Explanation

The White House states Donald Trump's duties have been put in place "to protect against dangers" to the America's homeland defense and to "enhance manufacturing".

Business Concerns

But the National Association of Homebuilders said in a statement in last month that the new levies could escalate residential construction prices.

"These new tariffs will produce further obstacles for an already challenged housing market by additionally increasing development and upgrade charges," stated leader Buddy Hughes.

Seller Outlook

According to a consulting group managing director and market analyst Cristina Fernández, merchants will have few alternatives but to raise prices on overseas items.

During an interview with a media partner recently, she said sellers would try not to raise prices excessively prior to the festive period, but "they can't absorb thirty percent duties on alongside other tariffs that are currently active".

"They must transfer costs, likely in the guise of a double-digit price increase," she added.

Ikea Response

In the previous month Swedish home furnishings leader the retailer said the tariffs on furniture imports cause operating "harder".

"The levies are impacting our company in the same way as additional firms, and we are attentively observing the changing scenario," the firm said.