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Potential tile tariffs drive a wedge between distributors and designers

Tiledriver

Potential tile tariffs drive a wedge between distributors and designers

(Dschag/Wikimedia Commons)

Seizing on the momentum generated by the Trump administration’s timber and steel tariffs, a coalition of tile manufacturers is lobbying the U.S. government to impose tariffs of over 400 percent on Chinese-supplied ceramic tiles. While the approval of new duties could lift domestic producers, some design industry professionals are pushing back.

On April 10, eight U.S. ceramic tile producers, all members of the Tile Council of North America, successfully petitioned the Department of Commerce (DOC) to launch an investigation into China’s practice of tile dumping. That group, collected under the name “Coalition for Fair Trade in Ceramic Tile,” included American Wonder Porcelain, Florida Tile, Inc., Crossville, Inc., Florim USA, Dal-Tile Corporation, Landmark Ceramics, Del Conca USA, Inc., and StonePeak Ceramics. The coalition claims that the Chinese government is subsidizing the production of ceramic tiles to below-market-rate prices (or even below production costs) to artificially crowd out the competition, and the group is asking that the DOC impose retaliatory penalties on Chinese manufacturers to level the playing field.

To avoid confusion over what is and is not a tile, the coalition has issued a blanket request pertaining to any tile-like product, no matter the use, thickness, or design, for pieces up to five-feet-by-fifteen-feet. The scope of the complaint also includes tile originating in China and modified— beveled, painted, or refined in any way—in the United States.

In response, the newly-formed Ceramic Tile Alliance (CTA), a group of designers, retailers, and distributors, has launched a petition against imposing new tariffs on Chinese tile. The group argues that doing so would hurt the long-term health of the U.S. ceramics industry to the benefit of domestic manufacturers, that architects and interior designers would lose valuable connections that they’ve cultivated with international artisans, and that retailers would only be able to offer a limited selection.

Additionally, the CTA alleges that showrooms would need to renovate their displays, some of them larger wall and floor pieces, to reflect that certain products would be no longer available. Overall, the CTA estimates that “thousands” of jobs could be lost as distributors and retailers would be forced out of business by higher prices and restricted supplies.

The United States International Trade Commission (ITC) will issue a preliminary injury determination by May 27. If the ITC and DOC find in favor of the coalition, the duties could be imposed as early as the beginning of next May.

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