• New tariffs of up to 50% on imported furniture and lumber take effect.
• Economists warn that costs will ultimately be passed on to consumers.
• The tariffs aim to protect US manufacturers and address national security concerns.

The latest round of tariffs imposed by President Donald Trump went into effect on October 14, targeting imported wood, kitchen cabinets, and upholstered furniture with rates ranging from 10% to 50%. A 10% tariff on softwood lumber and a 25% duty on kitchen cabinets will incrementally increase, with kitchen cabinets and vanities rising to 50% by next January, according to Channel News Asia and BBC.

Industry experts express concerns that these tariffs will exacerbate existing pressures on the housing market by increasing construction and renovation costs. National Association of Home Builders chairman Buddy Hughes remarked that the tariffs could create "additional headwinds" as home prices continue to rise, particularly affecting potential buyers in an already tight market, according to BBC and CBS News.

Moreover, the tariffs disproportionately target imports from Canada, the largest provider of US lumber, where tariffs now reach a combined 45% due to anti-dumping and countervailing duties. This situation could lead to a significant increase in housing costs, as estimates suggest that the added tariff could raise the cost of building an average home by around $2,200, according to Channel News Asia.

Trump's justification for these tariffs is rooted in the need to protect national security and boost domestic manufacturing. However, analyses predict that consumers will primarily bear the additional costs. Goldman Sachs estimates that about 55% of the added costs from these tariffs will be absorbed by American consumers, with businesses taking on 22% and foreign exporters the remaining 18%, as outlined by CBS News.

As retailers grapple with these new tariffs, they face pressure to pass costs onto consumers, a reality reflected in the anticipated price increases across the market. This raises significant questions about the affordability of housing and furniture in the coming months, emphasizing the broader implications of Trump's tariff policies on the US economy, according to BBC and CBS News.