KCMA Asks U.S. To Extend 25% Tariff On Chinese-made Bathroom Cabinets

KCMA asks U.S. to extend 25% tariff on Chinese-made bathroom cabinets, cabinets

2022-06-16 Source: Kitchen and Bathroom Information Views: 3235

Recently, the American Kitchen Cabinet Manufacturers Association (KCMA) urged its member companies to send a letter to the USTR asking the agency to extend the 25% tariff policy on imports of wooden cabinets, dressers and their parts from China.

The announcement follows a June 7 decision by U.S. Customs and Border Protection that overturned an earlier decision that found U.S. importer BGI Group evaded anti-dumping and countervailing duties.

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According to Section 301 of the Trade Act of 1974, and based on China's laws, policies and practices related to technology transfer, intellectual property, and innovation, the United States is currently subject to a 25% levy on wooden cabinets, dressers and their parts imported from China. tariff.

The resistance of American cabinet and bathroom cabinet companies to Chinese-made bathroom cabinets and cabinets has allowed them to enjoy the dividends of the US market. A recent report from the American Kitchen Cabinet Manufacturers Association said that sales of kitchen cabinets and bathroom vanities in the United States rose sharply in April, continuing last year's growth momentum. According to KCMA's latest monthly business trends survey, participating cabinet manufacturers reported an 11.9% increase in overall cabinet sales in April compared to April 2021. Sales of custom cabinets were up 11.7% from a year earlier, and sales of semi-custom cabinets were up 13.7%. According to KCMA, the companies surveyed account for about 75 percent of the U.S. cabinet and bathroom cabinet market in total.

Additionally, demand for countertops in the U.S. is projected to grow 4.4% annually to reach 1.1 billion square feet worth $56.8 billion by 2026, primarily driven by single-family kitchens and bathrooms, according to a major market research forecast. driven by the remodeling trend.

An increase in U.S. residential kitchen and bathroom remodels, as well as consumers' willingness to purchase more expensive materials such as granite and engineered stone, will significantly impact countertop consumption growth forecasts, according to a market analysis by market research firm Freedonia Group.

The business also pointed to a trend toward larger kitchens and multiple bathrooms in consumer demand. Freedonia Group research shows that,

The relative ease of countertop replacements, coupled with lumber shortages, has provided confidence in the countertop market, even during the COVID-19 pandemic, as housing completions accelerate significantly in 2021 and the upward trend in home renovations that began in 2020 continues into 2022.

"Demand for bathroom countertops will be influenced by style trends that call for more and larger bathrooms in the residential sector," the researchers said. Freedonia Group also noted that, similar to the rapid growth of engineered stone over the past decade, Porcelain is expected to be the fastest growing countertop material in the United States by 2026.