Washington, D.C.—Today, U.S. Representative John Rose (TN-06) led a letter to Secretary Gina Raimondo urging the Department of Commerce to finalize robust tariffs on Indian ceramic tile imports. The tile manufacturing industry, which has a direct presence in the Upper Cumberland, has been negatively impacted by the unfair and uncompetitive trade practices of Indian tile exporters, threatening good-paying manufacturing jobs in Tennessee.
The letter comes after the U.S. Department of Commerce announced in May the initiation of antidumping and countervailing duty investigations on ceramic tile from India. Recently, Commerce published its primary determination in the countervailing duty investigation, which the signers argue should be reevaluated and revised. The antidumping duty investigation preliminary determination is expected in late November.
The letter says, “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. 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.”
U.S. Rep. Rose released the following statement:
“Tennessee jobs are at risk due to India’s unfair and uncompetitive trade practices in the ceramic tile market,” said Rep. Rose. “Tennessee’s manufacturers deserve a fair shake on the world stage, and India’s underhanded subsidization and dumping of ceramic tile is upending the domestic market and hemming in American manufacturers. The Department of Commerce should use the tools at its disposal to aggressively counteract these nefarious trade practices to protect Tennessee jobs and domestic manufacturing.”
Read the full letter below and here:
Dear Secretary Raimondo:
On May 10, 2024, the U.S. Department of Commerce (Commerce), through the International Trade Administration, announced the initiation of antidumping and countervailing duty investigations on ceramic tile from India. As you are aware, Commerce published its preliminary determination in the countervailing duty investigation on September 24, 2024. The Department announced its preliminary decision in the antidumping investigation on November 22, 2024.
In its preliminary countervailing duty determination, the Department determined Win-Tel Ceramics Private Limited receives a 3.05 percent subsidy, Antiqua Minerals receives a 3.15 percent subsidy, and all other exporters receive a 3.08 percent subsidy on Indian ceramic tile imports to the U.S. However, it is clear these determinations should be reevaluated and revised to accurately portray the subsidization of products in the U.S. market. We understand the Department, oddly, decided to “penalize” the Indian Government’s lack of cooperation in Commerce’s inquiry into the provision of subsidized natural gas by adopting an inference that inadvertently benefited the Indian exporters and eliminated any natural gas tariff. The United Nations (UN) trade data utilized by Commerce was not comprehensive and failed to identify the ongoing natural gas subsidization for Indian tile production. Therefore, we urge the Department of Commerce to thoroughly examine petitioners' comments and continue diligent antidumping and countervailing duty investigations of India-produced ceramic tiles before the nonextended final determination deadline on February 5, 2025.
Over the past decade, India’s tile sales in the U.S. increased from 344,000 square feet in 2013 to approximately 405 million square feet by the end of 2023. In April 2024, U.S. ceramic tile manufacturers sounded the alarm on Indian ceramic tile flooding the U.S. market and requested the imposition of an antidumping and countervailing duty. The industry estimated reasonable tariffs between 408 percent and 828 percent would offset India's ongoing unfair advantages. However, Commerce’s preliminary determination in the anti-subsidy investigation failed to fully and adequately examine important issues, including natural gas subsidies and the undisclosed affiliations of Indian producers. Meanwhile, Domestic manufacturers continue struggling against cheaper imports, losing their market footprint. We trust the Department will devote sufficient attention to Indian dumping prior to its final determination.
From 2022 – 2023, the volume of tile imported from India increased by 42.6 percent to over 404 million square feet, and India comprised 20.3 percent of the total tile imports to the U.S. by the end of 2023. Moreover, between 2021 – 2023, the value of Indian tile imports increased significantly by more than $70 million. Since 2022, India has handily driven down imports from Italy, Spain, Brazil, and Mexico by hefty margins and has taken control of tile importers in the U.S.
Between 2013 and 2018, China accounted for 29 to 32 percent of ceramic import value in the U.S. Therefore, on June 1, 2020, the U.S. took action and imposed a definitive anti-dumping duty on ceramic tile from China, ranging from 229.04 to 356.02 percent. As a result, Chinese tile imports dropped to 0.4 percent in 2020 and 0.1 percent in 2021 of the total U.S. title imports. India has bolstered itself as the dumping frontrunner and should be confronted with the same aggressive response to ensure stability and prosperity for American tile manufacturers.
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. 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. Thank you for your consideration, and we look forward to engaging with you on this issue.
The letter was co-signed by U.S. Representative Tim Burchett (TN-02).
Background:
Tennessee’s Sixth Congressional District is home to multiple successful tile manufacturing companies: StonePeak Ceramics and Crossville Tile in Crossville, TN, Portobello America in Baxter, TN, and Colorobbia, USA in Cookeville, TN. While StonePeak is not headquartered in Tennessee, the company’s manufacturing division operates adjacent to Crossville Tile.
Over the past decade, Indian tile sales to the U.S. skyrocketed from just over 340 thousand square feet to approximately 405 million square feet. In April 2024, U.S. ceramic tile manufacturers sounded the alarm and requested the imposition of antidumping and countervailing duties on Indian tile.
Domestic tile manufacturers are all too familiar with the dumping of foreign tile into the U.S. market. Between 2013 and 2018, China accounted for over 30 percent of ceramic tile import value. However, the U.S. took action to suppress the bloat of Chinese tile imports by imposing a definitive antidumping duty.
Due to high product demand, employment in the ceramics industry in Tennessee has grown about 25 percent since 2018. Over this time period, the Tennessee Department of Economic and Community Development (TNECD) has helped secure $350 million in capital investment for new ceramic-related location and expansion projects, along with more than 575 new job commitments. For more information about the ceramic tile industry in Tennessee, read here.
This is a companion discussion topic for the original entry at https://johnrose.house.gov/media/press-releases/rep-rose-defends-tennessee-tile-manufacturing-jobs-letter-secretary-commerce