Ceramics, US-India tariff agreement alarms Italian producers
The idea of applying tariffs between 407% and 827% on Indian products has been shelved in the US. With higher duty costs, investments on American soil are also at risk
by Ilaria Vesentini
4' min read
4' min read
The liveliness that one breathes these days at Coverings, the most important North American trade fair for ceramics worldwide, among crowded aisles, showroom-like stands, music and events, tells of the challenge of the 1,100 exhibitors from 40 countries to react to the uncertainty of the star-studded market after Trump's inauguration and the first tranche of duties, rather than of any real optimism on the part of operators.
The higher-than-expected turnout goes hand in hand with real signs of a recovery in overseas exports for Made in Italy - which could, however, be a flare-up linked to the hoarding of stocks by distributors - but it is news as unexpected as it is worrying that marks the 35th edition of the show, which closes tomorrow at the Orange County Convention Center in Orlando: the US administration's decision to close the investigation into imports of Indian tiles without anti-dumping measures.
A year ago, precisely at Coverings, there was discussion of tariff measures of between 407% and 827%, as proposed by the 'Coalition for fair trade in ceramic tile', to be imposed on Indian products to stem the invasion (Indian tile costs $5 per square metre as opposed to over $20 for Italian tile, excluding duties). Instead, the US Department of Commerce filed the dossier establishing zero anti-dumping duties and just a 3% anti-subsidy tariff. "Our companies experience serious and effective market distortions on a daily basis, which have not emerged in the technical inspections," commented Armando Cafiero, director general of Confindustria Ceramica. "This is proof that the technical criteria set by the WTO for anti-dumping procedures have major limitations in establishing rules of fair competition.
However, Confindustria Ceramics does not intend to give up the battle in Europe, which is stuck at 7.5 per cent tariffs on Indian products. "We expected a clear line from Washington, which could then also be followed by Brussels. Now we risk that India, already the world's leading exporter in terms of volume, will become even more aggressive,' the director adds. 'The WTO should also start considering environmental and social aspects that undermine fair competition between countries, but talking today, in this climate of geopolitical uncertainty, about reforming multilateral international rules is utopian. We must act at the European level first of all to avoid penalising ourselves with rules such as the ETS and different energy price lists'.
Without duties it is difficult for European producers to withstand Asian competition, as the previous affair with China teaches us: the tariffs of between 195% and 356% imposed by the United States against Chinese ceramics (in addition to the countervailing duties of 103%) made Chinese product disappear from the US market. But that 22% imported into the USA from Beijing before the duties has been replaced by Indian tiles, not by the high quality Italian product, which continues to excel only if we reason in value and not in volume (data published yesterday by Tcna-Tile Council of North America speak of over 700 million dollars of Italian tiles imported in 2024, almost 30% of total imports). Making the picture even more unstable is the protectionist policy of the Trump administration, which since 5 April has introduced an additional 10% duty on all imports, adding it to the 8.5% already historically in force on European ceramics, and is waiting to see if the second tranche of 10% horizontal duties will also come into force in June.
