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

Following a presidential directive signed by President Donald Trump in the previous month, a 10% tariff on wood materials foreign shipments took effect this Tuesday.

Tariff Rates and Upcoming Changes

A twenty-five percent tariff is also imposed on foreign-made cabinet units and bathroom vanities – rising to 50% on 1 January – while a 25% tariff on upholstered wooden furniture will increase to 30%, unless updated trade deals get agreed upon.

Donald Trump has cited the need to safeguard American producers and national security concerns for the decision, but certain sector experts fear the duties could raise residential prices and cause customers postpone house remodeling.

Explaining Customs Duties

Customs duties are charges on overseas merchandise typically applied as a share of a good's cost and are paid to the American authorities by firms importing the products.

These companies may shift part or the whole of the increased charge on to their customers, which in this case means ordinary Americans and other US businesses.

Previous Duty Approaches

The leader's duty approaches have been a central element of his latest term in the executive office.

Trump has previously imposed industry-focused tariffs on metal, metallic element, light metal, automobiles, and car pieces.

Consequences for Northern Neighbor

The supplementary global 10% tariffs on softwood lumber signifies the commodity from the northern neighbor – the second largest producer globally and a key American provider – is now dutied at above 45 percent.

There is already a total 35.16% American countervailing and anti-dumping duties placed on most Canadian producers as part of a decades-long disagreement over the commodity between the both nations.

Trade Deals and Exclusions

In accordance with active trade deals with the America, tariffs on lumber items from the Britain will not surpass ten percent, while those from the EU bloc and Japan will not go above 15%.

Official Justification

The White House says Donald Trump's import taxes have been enacted "to defend from dangers" to the United States' domestic security and to "enhance industrial production".

Business Worries

But the National Association of Homebuilders stated in a announcement in last month that the new levies could increase homebuilding expenses.

"These new tariffs will generate further headwinds for an already challenged housing market by even more elevating building and remodeling expenses," stated head the group's leader.

Merchant Viewpoint

According to a consulting group senior executive and market analyst the analyst, merchants will have no choice but to hike rates on overseas items.

During an interview with a media partner recently, she said stores would seek not to raise prices excessively before the holiday season, but "they can't absorb thirty percent taxes on in addition to other tariffs that are currently active".

"They must pass through pricing, probably in the guise of a double-digit price increase," she continued.

Ikea Response

Last month Scandinavian furniture giant the retailer commented the levies on overseas home goods cause operating "tougher".

"The levies are impacting our company in the same way as fellow businesses, and we are attentively observing the evolving situation," the company said.