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Among the tariff increases that worry me are the added expenses that consumers and businesses will shoulder beginning October 14 for softwood lumber and timber. This added 10% duty will undoubtedly take a toll on new home construction (single-family, multi-family, etc.), office fit-outs, and more. Kitchen cabinets, vanities, upholstered wood furniture, and the like will see a 25% increase on that day as well. This will be a particular challenge for Canada, the largest softwood exporter to the U.S.
“In 2024, the U.S. imported about $11.59 billion worth of ‘wood and articles of wood, wood charcoal,’” according to Trading Economics. “Manufacturers in Vietnam, China, and Mexico—major furniture exporters—are bracing for impact. The U.S. imported about $12.2 billion in household furniture products during the first six months of the year, according to Furniture Today.”
This will undoubtedly affect the office furniture market as well and impact financial institutions, restaurants, physicians’ and law offices, and any front office looking to purchase new chairs, desks, and more.
It is too early to see the accumulated impacts of these tax increases; however, they’ll likely show up in end-of-year numbers as purchases are put on hold or canceled altogether.
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