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Upper Cumberland Times

Wednesday, December 4, 2024

Tennessee representative urges tariffs on Indian ceramic tiles

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U.S. Rep. John Rose 6th District of Tennessee | Official U.S. House headshot

U.S. Rep. John Rose 6th District of Tennessee | Official U.S. House headshot

U.S. Representative John Rose has taken a stand in support of Tennessee's tile manufacturing industry by addressing a letter to Secretary of Commerce Gina Raimondo. In the letter, Rep. Rose urged the Department of Commerce to impose significant tariffs on ceramic tile imports from India, citing concerns over unfair trade practices that threaten local jobs.

The Department of Commerce initiated investigations into Indian ceramic tile imports earlier this year, focusing on potential antidumping and countervailing duties. The preliminary findings of these investigations have prompted calls for reassessment and revision from Rep. Rose and others who argue that the current determinations do not adequately address the subsidization issues at hand.

"As the Department of Commerce continues its investigations, we urge the Department to properly assess the data and finalize robust duties on Indian ceramic tile imports," stated Rep. Rose in his letter. "In order to solidify and stabilize domestic manufacturing, we must ensure American manufacturers have the upper hand in the market and prioritize their needs above all others."

Rep. Rose emphasized that Tennessee's manufacturing jobs are at risk due to India's trade practices in the ceramic tile sector. He described these practices as underhanded subsidization and dumping that disrupts the domestic market.

The preliminary determination by Commerce found subsidies for several Indian companies but was criticized for not fully considering natural gas subsidies affecting production costs. The industry has called for tariffs ranging between 408 percent and 828 percent to offset India's advantages.

Co-signing Rep. Rose's letter was U.S. Representative Tim Burchett (TN-02). The issue is particularly relevant for Tennessee’s Sixth Congressional District, which hosts several key players in tile manufacturing such as StonePeak Ceramics, Crossville Tile, Portobello America, and Colorobbia USA.

Since 2013, Indian tile sales in the U.S. have surged dramatically from 344 thousand square feet to approximately 405 million square feet by late 2023. This influx has been attributed to aggressive pricing strategies that have also reduced imports from other countries like Italy and Spain.

Historical context reveals similar challenges faced with Chinese imports until substantial antidumping duties were imposed in 2020, drastically reducing their presence in the U.S market.

The growth of Tennessee's ceramics industry has been notable over recent years with increased employment rates driven by high product demand and substantial capital investments facilitated by state economic initiatives.

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