Trump's tariffs on lumber and furniture go into effect

Lumber, furniture and kitchen furnishings are now subject to specific tariffs imposed by Donald Trump starting at midnight Tuesday. TLumber imports will face a new 10% tax, while furniture and kitchen-specific pieces will be taxed at 25%.

As with previous sectoral tariffs on steel, aluminum, autos, and copper, the White House says the new tariffs are necessary to protect national security. The rates will rise sharply on Jan. 1, reaching 30% for furniture and 50% for kitchen furniture.

Major blow for Canada

As with previous Trump-era tariffs, countries with trade agreements, such as the United Kingdom, will face duty rates capped at 10%, while the European Union and Japan will have a maximum rate of 15%.

In contrast, products from Mexico and Canada, normally protected under the U.S.-Mexico-Canada Agreement (USMCA), will be subject to the new tariff, particularly lumber.

The move is a major blow to Canada, which supplies about a quarter of U.S. lumber imports.

Experts warn of higher costs for construction

On average, the tariffs could add $2,200 to construction costs, according to Stephen Brown of Capital Economics, quoted by AFP. “The United States imports 27% of its furniture from China and 20% from Vietnam and Mexico,” he said.

These new tariffs are on top of existing duties on all products entering the United States, which range from 10% to 50% depending on the country of origin.