Massive China Tile Tariffs Move Forward
WASHINGTON – Tariffs that would balloon the price of ceramic tile from China moved a step closer last week to being permanent.
The U.S. Department of Commerce announced March 31 that it will recommend tariffs on Chinese ceramic tile that could more than octuple the declared customs value at U.S. ports-of-entry.
Commerce’s affirmative final determinations concludes its antidumping duty (AD) and countervailing duty (CVD) investigations of imports of ceramic tile from China. The recommendations now go to the U.S. International Trade Commission (USITC), with a final decision expected by mid-May.
Commerce determined that producers and/or exporters from China sold ceramic tile at less than fair value in the United States at rates ranging from 229.04% to 356.02%. The investigation also found that Chinese producers/exporters from China received countervailable subsidies at a rate of 358.81%.
The combined AD/CVD tariffs being assigned by Commerce are based on information provided by Chinese producers/exporters to Commerce during the investigation. For anti-dumping activities, some companies will be assessed 229.04%, while all others will be under a 356.02% rate. All Chinese ceramic-tile producers/exporters will face a separate 358.81% subsidy rate.
Depending on rate adjustments, the combined tariffs will range between 587% to 714%.
The USITC will make a final determination on the tariffs on or about May 14, according to Commerce.
If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated, and no orders will be issued.
Commerce’s investigation came as the result of a petition filed last spring by the Coalition for Fair Trade in Ceramic Tile (CFTCT), a group of eight U.S. ceramic-tile producers. The CFTCT members are American Wonder Porcelain; Crossville Inc.; Dal-Tile Corp.; Del Conca USA Inc.; Florida Tile Inc.; Florim USA; Landmark Ceramics; and StonePeak Ceramics.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to CVD duties aimed at directly countering those subsidies.
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