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Several recently announced American levies targeting imported cabinet units, vanities, wood products, and select upholstered furniture are now in effect.

As per a executive order signed by Chief Executive Donald Trump last month, a ten percent import tax on wood materials foreign shipments was activated this Tuesday.

Tariff Rates and Upcoming Changes

A twenty-five percent levy is also imposed on foreign-made cabinet units and vanities – escalating to fifty percent on 1 January – while a 25% import tax on wooden seating with fabric will increase to 30%, except if fresh commercial pacts are reached.

Donald Trump has cited the need to shield US manufacturers and defense interests for the action, but various industry players worry the tariffs could elevate residential prices and lead consumers postpone house remodeling.

Defining Import Taxes

Import taxes are levies on imported goods usually imposed as a percentage of a good's cost and are submitted to the American authorities by businesses shipping in the items.

These firms may shift part or the whole of the extra cost on to their clients, which in this scenario means typical American consumers and other US businesses.

Previous Import Tax Strategies

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

The president has earlier enacted sector-specific taxes on steel, metallic element, light metal, automobiles, and vehicle components.

Effect on Canadian Producers

The extra worldwide ten percent duties on wood materials implies the material from the Canadian nation – the number two global supplier worldwide and a major American provider – is now taxed at more than 45%.

There is presently a combined 35.16% American countervailing and trade remedy levies placed on the majority of northern industry players as part of a years-old dispute over the product between the two countries.

Bilateral Pacts and Exemptions

Under existing trade deals with the America, duties on wood products from the Britain will not surpass ten percent, while those from the European community and Japan will not exceed 15%.

White House Justification

The White House claims Trump's tariffs have been put in place "to guard against dangers" to the US's homeland defense and to "bolster manufacturing".

Business Apprehensions

But the Homebuilders Association stated in a statement in last month that the new levies could raise homebuilding expenses.

"These new tariffs will produce extra obstacles for an currently struggling residential sector by even more elevating building and remodeling expenses," stated chairman the group's leader.

Merchant Perspective

According to an advisory firm managing director and retail expert the analyst, stores will have no choice but to raise prices on foreign products.

Speaking to a news outlet in the previous month, she stated stores would attempt not to increase costs drastically ahead of the year-end shopping, but "they cannot withstand thirty percent tariffs on in addition to other tariffs that are already in place".

"They must transfer pricing, probably in the guise of a double-digit cost hike," she continued.

Ikea Response

Last month Swedish retail major Ikea said the duties on furniture imports cause doing business "tougher".

"These duties are impacting our operations like fellow businesses, and we are closely monitoring the developing circumstances," the company remarked.