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SAP Distribution Blog

New Cases Filed Relating to Tarrif and Chinese Ceramic Tile

Posted by SAPDistribution Team on April 25, 2019

Over $ 600 million worth of these types of ceramic tile were imported into the United States from China in 2018. On April 10, 2019, the Coalition for Fair Trade in Ceramic Tile filed petitions with the U.S. Department of Commerce (“DOC”) and the U.S. International Trade Commission (“ITC”) seeking the imposition of antidumping (“AD”) and countervailing (“CVD”) customs duties on imports of ceramic tile from the People’s Republic of China. The antiduping filing charges that Chinese tile is being priced below market causing harm to US manufacturers and that these low prices are being subsidized by the Chinese government. Unfair trading practices not only hurt US manfuacturers, but also American importers who bring in tile from Europe and other countries.

The suit seeks imposition of tarrifs which could double to quadruple the current 25% tarrif that the Trump administration imposed last year. The goal of these special tarrifs is to change the Chinese trade policy. Again, this would not only affect the Chinese manufacturers who are "dumping" tile, but the US importers who bring in the Chinese tile, who would have to raise prices to cover the additional cost of tarrifs. This would then in turn be borne by the US consumers.

Assuming the government investigates these claims and seeks to take action, it is likely to take a year or more for additional tarrifs to take effect. This action would more closely allign with the European Union which has maintained antidumping duties on imports of Chinese ceramic tile for several years.

Topics: Tile and Stone Small Medium Size Businesses, Current Events, Flooring Industry

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