Business
President Trump has announced new tariffs on imported goods, with 10% duties on foreign softwood lumber and timber and 25% on kitchen cabinets and upholstered furniture, set to take effect October 14, 2025.
The administration plans to escalate these measures on January 1, 2026, boosting cabinet tariffs to 50% and upholstered furniture duties to 30%. These latest additions follow earlier 25% tariffs on heavy-duty trucks and components announced the previous week.
The new tariffs are already impacting supply chains and corporate strategies. According to a PwC Pulse Survey from May 2025, 30% of companies have paused or revisited deals due to tariff uncertainty, while 51% continue pursuing transactions despite the challenging environment.
Major retailers are responding with various strategies including tariff engineering—adjusting product origin or classification to minimize duties—and expanding private label offerings to maintain margin control. Some companies are front-loading imports of non-perishables before new duties take effect.
'Companies are elevating tariffs from a financial line item to a strategic planning variable,' noted a supply chain expert. 'We're seeing fundamental restructuring of global supply networks in response to these policies.'
The tariffs particularly affect trade with China, India, and Brazil, with businesses scrambling to establish alternative supply routes through Mexico, Vietnam, and Eastern Europe to mitigate impact.
