by WASHINGTON — President Trump announced Wednesday that the government will delay increasing tariffs on imported upholstery, kitchen cabinets and vanities for another year.
However, the current 25% tariff on these products remains in effect.
The move delays an additional 5% tariff that was scheduled to take effect Thursday Jan. 1.
In the announcement made by the White House Wednesday, the President said that the U.S. continues to negotiate with countries to address trade reciprocity and national security concerns.
The 25% increase in tariffs which first took effect Oct. 14 was the result of a Section 232 investigation into imports of timber, lumber and derivative wood products that began earlier in the year.
“President Trump recognizes that an overreliance on foreign timber, lumber, and their derivative products could jeopardize the United States’ defense capabilities, construction industry, and economic strength,” the White House said on Dec. 31. “America’s reliance on imported lumber is exacerbated by foreign government subsidies and predatory trade practices that undermine the competitiveness of the U.S. wood products industry.”
While the delay in the additional 5% grants some reprieve to companies that import upholstery, kitchen cabinets and vanities, the bulk of the tariffs have been in effect for two and a half months, causing many in the industry to pass along price increases to retailers and consumers.
Sometime early this year, the U.S. Supreme Court is also expected to rule on the legality of tariffs, a move that could jeopardize billions in revenue the government has collected since this past spring and summer.
