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Multiple fresh US import duties targeting foreign-sourced kitchen cabinets, vanities, wood products, and select furnished seating have been implemented.

Following a executive order authorized by President Donald Trump last month, a 10% duty on wood materials foreign shipments was activated starting Tuesday.

Import Duty Percentages and Future Increases

A twenty-five percent levy will also apply on imported kitchen cabinets and vanities – increasing to 50% on January 1st – while a 25% tariff on wooden seating with fabric is scheduled to grow to 30%, except if new trade agreements get agreed upon.

The President has pointed to the necessity to protect domestic industries and defense interests for the action, but certain sector experts are concerned the taxes could raise housing costs and cause homeowners postpone home renovations.

Understanding Customs Duties

Import taxes are levies on foreign products usually imposed as a percentage of a item's cost and are submitted to the US government by businesses shipping in the goods.

These enterprises may shift part or the whole of the additional expense on to their clients, which in this case means ordinary Americans and other US businesses.

Previous Duty Approaches

The leader's duty approaches have been a prominent aspect of his current administration in the presidency.

Trump has before implemented targeted duties on metal, metallic element, light metal, vehicles, and vehicle components.

Consequences for Northern Neighbor

The supplementary worldwide ten percent duties on wood materials signifies the product from the northern neighbor – the number two global supplier internationally and a key American provider – is now dutied at more than 45%.

There is already a total thirty-five point sixteen percent American offsetting and anti-dumping tariffs placed on most Canada-based manufacturers as part of a years-old conflict over the commodity between the both nations.

Trade Deals and Exemptions

In accordance with existing trade deals with the America, 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 go above fifteen percent.

White House Rationale

The presidential administration states Donald Trump's tariffs have been put in place "to guard against threats" to the US's national security and to "bolster factory output".

Business Worries

But the National Association of Homebuilders said in a release in last month that the recent duties could escalate housing costs.

"These new tariffs will generate extra headwinds for an presently strained housing market by even more elevating construction and renovation costs," stated leader the group's leader.

Seller Perspective

As per Telsey Advisory Group managing director and retail expert the analyst, stores will have little option but to hike rates on overseas items.

During an interview with a news outlet in the previous month, she noted sellers would attempt not to raise prices too much ahead of the year-end shopping, but "they cannot withstand thirty percent taxes on top of existing duties that are already in place".

"They will need to shift costs, likely in the form of a double-digit price increase," she added.

Ikea Reaction

In the previous month Scandinavian retail major Ikea stated the levies on imported furnishings make doing business "tougher".

"The levies are affecting our company similarly to fellow businesses, and we are carefully watching the evolving situation," the firm said.