The over $16 billion of Chinese goods subject to 10% U.S. tariffs earlier this year were recently joined with a new spate of Chinese products targeted with the tariffs. These taxes are set to go into effect on Monday, September 24. They will increase to 25% in January if no agreement is reached with China.
Among these new $200 billion of Chinese goods are Chinese tile products which include glazed and unglazed ceramic, porcelain and glass.
Eric Astrachan, executive director of the Tile Council of North America (TCNA) joined more than 350 individuals who testified before the Trade Commission in Washington, D.C. in August about the tariffs. Many expressed concern that tariffs would affect downstream prices for consumers. But Astrachan took a pro stance, stating that tariffs would have a protective effect on domestic production, U.S. jobs and imported tile from other countries. In addition, he cited problems with Chinese tile mislabeled as porcelain, intellectual property theft and dumping tiles – selling them at below cost. Listen to the podcast at:
ws/marketplace-morning-report/ 08232018-us-edition, with Astrachan speaking at the 2:07 mark.
Higher tariffs help U.S. production
On a more recent edition of NPR Marketplace Morning Report on September 18, Astrachan went into greater detail with host Kai Ryssdal, explaining why he’d like even higher tariffs than the current 10% duty. He reiterated the dumping issue with Chinese tiles.Plus he said he’d like to see the 25% tariff enacted to help level the difference in price between Chinese tiles and those produced domestically or imported from other countries. His view is that tariffs on Chinese tile would protect domestic jobs and U.S. industry. He went into detail about copying of designs that has been a hallmark of Chinese intellectual property theft, and how that hurts domestic producers.
No effect at consumer level on tile prices
However, Astrachan reassured Ryssdal and listeners that tariffs on Chinese tile goods would not affect the consumer, due to the tile industry’s robust domestic production and import stream.
To listen to the full interview, visit https://www.npr.org/podcasts/3
81444600/marketplace and scroll to the September 18 “The use-it-or-lose-it season” episode, starting at the 3:55 time mark.
In a recent letter to TCNA members and colleagues, Astrachan thanked members who submitted supportive comments as well as the TCNA government relations team in DC.
“We understand and sympathize that 10% duty, and especially the potential 25% duty scheduled for 2019 (if no resolution with China), can negatively impact members’ tile lines being sourced from China, and we regret that impact on members,” he continued. “This was offset by the supermajority position that tariffs were appropriate based on much more than economic issues: specifically, our opposition to false labeling (non-porcelain tiles sold as porcelain), Chinese copying of popular designs, and dumping.”