American News -- US President Trump announced a 10% tariff on imported cork logs and timber starting from October 14th. The picture shows a large amount of logs piled up outside a sawmill in West Kelowna, British Columbia, Canada. (Reuters)
On Monday, US President Trump announced details of tariffs on imported timber and furniture, with a tariff rate of 10% on imported cork logs and timber; The tariff rate for bathroom cabinets, kitchen cabinets, and upholstered furniture is 25%. These tariffs will take effect in two weeks, with tariffs on some products set to increase significantly early next year, but countries that have reached trade agreements with the United States may enjoy lower rates.
On Monday (September 29), Trump signed a proclamation citing Section 232 of the Trade Expansion Act to impose tariffs on imported timber and furniture. The new tariffs will take effect at 12:01 AM Eastern Time on October 14th (12:01 PM Singapore Time on the same day).
In addition, starting from January 1st next year, the tariff on upholstered furniture will be raised to 30%, and the tariff on kitchen cabinets and bathroom cabinets will be increased to 50%.
However, some major economies that have already reached trade agreements with the United States will enjoy lower tax rates. Among them, the tariff rate for wooden products from the UK will not exceed 10%, while the tariff rate for wooden products from the EU and Japan will be limited to 15%.
However, the announcement did not mention Vietnam. The United States had previously reached an agreement with Vietnam to lower tariffs on Vietnamese goods from the original 46% to 20%, but the official text of the agreement has not yet been released.
The announcement points out that trade partners who negotiate to address the security threat of imported timber to the United States may be able to reach alternative solutions with the United States regarding these tariffs.
The US Department of Commerce launched an investigation into imported timber, logs, and derivative products in March. The announcement states that imported wooden products are weakening the US economy, posing a continuous threat of closure to US lumber mills and disrupting the supply chain of wooden products, which are crucial for national defense and critical infrastructure.
Trump said, "The measures in this announcement will strengthen the supply chain, enhance the resilience of related industries, create high-quality jobs, and improve the utilization rate of domestic timber production capacity... These measures are necessary and appropriate to address the threat posed by imported timber products to US national security
The impact of timber tariffs on Canada is expected to be the greatest, as Canada is the largest timber supplier to the United States. The main suppliers of furniture and kitchen cabinets in the United States include Vietnam, China, and Mexico.
In response to Trump's repeated use of the tariff stick, Chinese Foreign Ministry spokesperson Guo Jiakun responded at a regular press conference on Tuesday (September 30): "There are no winners in tariff wars or trade wars, and there is no way out for protectionism
Economists and construction industry insiders warn that due to the inability of existing production capacity in the United States to meet domestic demand, timber tariffs may push up construction costs and housing prices, exacerbating the housing cost crisis. Taxation on furniture and kitchen cabinets may also increase the burden on builders and homebuyers.
Last week, Trump announced that tariffs of 30% to 50% will be imposed on kitchen cabinets, bathroom sinks, and other items as early as October 1st, 100% import tariffs will be imposed on all original or patented drugs, and 25% import tariffs will be imposed on heavy trucks.
Trump also threatened again on Monday to impose a 100% tariff on all films produced outside the United States, but did not provide further explanation. He wrote on social media, "Our film production industry has been stolen by other countries, just like candy in a baby's hand. Due to the weakness and incompetence of the governor of California, the state has suffered a particularly severe blow
Trump first proposed taxing movies in May. This indicates that he intends to extend trade protectionism policies to the cultural industry, causing great uncertainty for film companies that heavily rely on cross-border cooperation and international box office revenue.
Analysts point out that if the film tariffs are really implemented, the related costs will inevitably be passed on to consumers.
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