Ceramic Tile Report: Tariffs put renewed focus on domestic supply – April 2025

By Jennifer Bardoner

When tile industry consultant Joe Lundgren answers his phone these days, “every other word is tariff, tariff, tariff,” he says. Though Federal Reserve chairman Jerome Powell has said the economic impact from President Trump’s planned tariffs on a range of products is expected to be transitory, the broader implications have the potential to alter the landscape for the domestic ceramic category, the majority of which is imported.

“While the tariffs and trade policies create short-term challenges, they also present an opportunity for U.S. manufacturers to capture more marketshare,” says Leonardo Pesce, CEO of Panariagroup USA, which owns the Florida Tile facilitity in central Kentucky. “By focusing on efficiency, innovation and value-driven solutions, we can strengthen our position in the evolving market landscape.”

When tariffs were placed on Chinese tile in 2018, the U.S.’ then-largest importer by volume was effectively removed from the supply chain, opening the door for other low-cost suppliers around the world, like India, to enter the playing field-though India is currently under investigation and might face similar antidumping duties, in addition to the reciprocal tariffs Trump has proposed against trading partners across the globe. As the world awaits concrete outcomes on these issues, importers are evaluating their sourcing partners, domestic manufacturers are strategizing their inventory and capacity, and scenario planning is being executed at every level.

A MULTITUDE OF UNKNOWNS
“Until the administration nails down exactly what the tariffs are, you can’t make any kind of prediction,” Lundgren says. “Even then, forecasting is going to be tough. Interest rates have to drop for the industry to see more demand. Tariffs have taken precedence, but without that, nobody can make a business plan.”

Eric Astrachan, executive director of the Tile Council of North America (TCNA), notes that ceramic industry activity pretty closely mirrors new-home starts. “The uncertainty with tariffs is a disaster for the construction market,” he says. “Can you imagine what a tariff on lumber coming out of Canada is going to do to homebuilding prices and just availability? And if we have a 25% tax on everything coming from Mexico, it’s going to destroy our economy, especially if you add in all the uncertainty. Who’s going to build a new home in this climate?”

With the news changing minute by minute in regard to the tariffs Trump has proposed-which might include 25% tariffs on goods from Mexico and Canada and reciprocal tariffs against countries around the world that tax American exports more than we tax theirs or that make it hard for American companies to do business in their country-many ceramic suppliers are in wait-and-see mode. But there are some knowns: India, now the largest ceramic importer to the U.S., accounted for 394 million square feet of domestic consumption last year, followed by Spain at 339 million square feet, Italy at 308 million square feet and Mexico at 294 million square feet. If substantial tariffs were to be placed on India and Mexico, that would impact approximately half of the category’s imports, or 25% of the overall market. Though, other countries, including Spain and Italy, could face tariffs as well.

“As it relates to new tariffs, the biggest concern for the industry will be the reciprocal tariffs,” says MSI co-CEO Raj Shah. “Right now, it’s hard to calculate what the effects will be, as we don’t know the exact outcomes. That said, it will most likely be inflationary to the homebuilder market, which is already having issues.”

Some clarity was expected on April 2, which Trump declared “Liberation Day” in reference to the reciprocal “eye for an eye” tariffs he has floated enacting, though the situation could drag on if these are, in fact, negotiating tactics.

In mid-April, the Department of Commerce will make its final ruling in the antidumping case against India, which is suspected of using subsidies to produce tile at an impossibly low cost and flood the U.S. market with undervalued product. Since 2020, the volume of tile from India has grown 2,200%, Astrachan reports, and last year, the price per square foot dropped while every other country’s went up amid ongoing energy and freight challenges.

“We feel very strongly that tile is being dumped into the U.S.,” Astrachan says, noting that they know what components like freight, glaze and natural gas cost, relatively. “We’re just hoping that Commerce has the staffing, and with all of the change happening-both in terms of federal workers and the Commerce Secretary, which potentially allows confusion-that they’re able to wade through that.”

Preliminary rulings in the matter enacted negligible tariffs of roughly 3%, and most are expecting similar results this time around. While Astrachan believes American producers will be able to make “a really strong case” that Indian exports have harmed their businesses, pointing to downed kilns and expansion plans on hold amid the nearly 10% drop in domestic tile shipments last year, he adds that a tariff under 20% “probably wouldn’t have much impact at all.”

Stonepeak executive vice president Hector Narvaez was part of a delegation that traveled to Washington, D.C. several weeks ago to speak with officials about the case. Most producers do some portion of business with home centers, he notes, which is where most of the Indian tile is sold.

“Over just four or five years, India has grown from almost 0% participation in the U.S. market to now 20% of all imports into the U.S.,” says Narvaez. “What if three years from now it’s 40%? That’s probably going to drive down the price of tile everywhere, so a shift down to where everybody has to make more economical products-even importers have to be competing against them. If we lose the case, I think you will see some [domestic] manufacturers push down future growth plans.”

While Mexican tile, which is a mix of porcelain tile and red body ceramic, was priced at $0.92 per square foot, per TCNA’s latest findings, Indian tile, the majority of which is porcelain, dropped from $0.64 per square foot to $0.62 per square foot last year.

DOMESTIC ADVANTAGE
Regardless of whether sweeping tariffs are enacted on ceramic imports, the situation underscores the reliability and predictability of domestic sourcing.

“The talk in the industry right now is tariffs, but that’s just one part of the overall supply chain issues we’ve been talking about for five years,” says Mike Ward, vice president of sales for Portobello America. “The chain is recovering, but there always seems to be some interference greater than what we saw prior to Covid. Traditional spikes in freight seem to be much higher, then much lower. It’s hard to predict what your lead times are going to be. The tariff situation just adds complexity to the whole mix.”

Dunn says Happy Floors has always sourced exclusively from Italy and Spain but is now in talks with U.S. producers.

“In recent years, external challenges such as Covid-related disruptions, freight and port strikes, geopolitical conflicts affecting raw material supply, and fluctuating economic conditions have forced us to rethink our approach,” she says. “Domestic manufacturers are all eager to get a piece of the action. They see what’s coming; they see everybody looking and seeing that there are going to be some restrictions that hinder current relationships [overseas].”

Narvaez reports that he’s getting requests from commercial and national accounts about switching from the Italian products already specified. “I think they’re making their phone calls right now, doing their due diligence and trying to understand what’s out there,” he says, noting the uncertainty surrounding the April 2 declarations and the fact that many domestic companies are not equipped to produce the same quality porcelain slabs imported from Italy.

Dave Godlewski, new director of sales for Wonder Porcelain, says the company is ramping up production in part due to needs in the specified sector. “With the tariffs and import challenges, we’re finding that a lot of specifications are being halted because of increased costs,” he explains. “For the next six to eight months, if someone’s specification is going to be challenged, meaning their price is going to go up 30%+, they’re going to be looking for quick moves to save that cost, but not every manufacturer has that sitting on the shelf, because there are always capacity issues in the U.S.”

While not every producer is scaling up, they are all looking at ways to maximize their capacity. As Larry Browder, executive vice president for AHF’s Crossville business, explains, “First and foremost, it’s about, how do we leverage our domestic capabilities to really lean into the segments we play well in and the segments where domestic manufacturing plays an important part? You certainly look at what other markets you can tap into? Some of that comes down to production capabilities and what people can make and what they can’t. You’ve got to understand what your sweet spot is.”

Dal-Tile executive vice president of sales and operations Scott Maslowski says the company has pushed its manufacturing capacity to be more flexible in the types of products it can make and how seamlessly it can switch from one to the next. Similarly, Mauricio Inglada Rubio, Del Conca USA’s vice president of marketing and sales, says it is focusing on improving lead times and flexibility, rather than increasing capacity.

“Delivering good service is our priority,” says Rubio. “When you’re competing with Italy and Spain, the prices there are very competitive, so here in the States, it’s always going to be a little bit more expensive, but the advantage is you don’t have to lock your inventory dollars up, because we can turn their inventory quickly.”

Tariffs could level the playing field in terms of price. Dunn says the delta has already narrowed due to freight costs and the fact that domestic manufacturers are “ponying up to the table” for new customers to help pick up the slack in the market.

“For a manufacturer, their metric is capacity-they don’t shut the kilns down, so they want to keep their pipeline full,” she explains. “They usually have to have multiple buyers of a collection, and a lot of larger players in between. On the Happy Floors side, we’re large enough that we can take a collection and meet the minimum runs; that’s what we do when we go to Europe. But the beauty of working with Italy or Spain is that we can buy lines and have them sitting there, but we’re not liable because they sell beyond the U.S. … but most U.S. factories don’t export. Usually, on an introduction, you wouldn’t want to buy the entire line because there’s a heavy commitment to that investment-wise.”

She also worries that domestic manufacturers’ pricing could go up once demand does. But, she notes, “We have to have something in our back pocket, because we’re one virus away, one war away, and if we lock ourselves out, we’re doomed by default because other players are already positioning themselves.”

Virtually all of the producers report an increase in interest as customers plan ahead and start to diversify with more U.S.-based product. “But in the short term, we still have some cautious steps that manufacturers and distributor partners are taking to make sure there is a little clearer path,” adds Godlewski.

Lundgren believes distributors will pull the trigger after they see the introductions at Coverings. “That’s where people will make the decision to say, ‘I’m going to stay with my sourced suppliers and not do anything new and just keep my inventories really low,’ or ‘I’m going to do something new with domestic,’” he says. “Ultimately, you could shift back to sourcing in a year if you find out domestic is too high in comparison or other products are nicer, but right now, you have to either make the choice to go domestic with some new lines or stay stale with your current offering.”

PRODUCT MIX
While most of the category’s innovations come out of Europe, they’re largely centered on advances in equipment. “And once the equipment companies come up with something new, everybody’s got it-anybody who wants to make the investment, that is,” Lundgren explains.

Ward says domestic manufacturers are capable of producing offerings that span the spectrum, noting that “what is made here is a function of what is being used here.” But there is not enough capacity to address all of the market’s needs, should imports take a huge hit.

“I’ve heard that the current domestic manufacturers can absorb up to 35%, maybe 40% of ceramic demand,” he says. “Right now, the big number breakout is 70% imported, 30% domestic. Fifteen years ago, it was 80/20, so the domestics have been slowly taking share.”

Narvaez adds that while everyone could invest fairly easily in new machinery, it takes time to buy land for significant expansions and to adjust operations.

“Some outsourcing companies may pivot their focus toward enhancing local supply chains, leading to potential shifts in product mix and marketshare,” says Dunn. “The extent of these changes will depend on factors such as production scalability, investment in automation and the overall economic landscape.”

MSI and Emser see advantages in the flexibility of their sourced supply chain models, which encompass a number of countries across the world. Says Shah, “We may need to make some changes in our sourcing, but we do that daily. For 50 years, MSI has had a policy of sourcing from many countries. We have built an adaptable and flexible sourcing model. This has been proven many times through various dumping cases, the pandemic, etc.”

The higher end of the market, which has been more active amid inflation, can absorb price increases on the kinds of products imported from Europe, like gauged panels, which are now being produced in thinner formats, helping to offset transportation costs-though several U.S. companies also produce these. And there is work being done to reduce the related costs of installation.

“Advancements in lightweight porcelain panels and improved installation systems, such as enhanced adhesive technologies and modular interlocking formats, are paving the way for faster and more cost-effective installations,” Dunn says. “These developments not only streamline the process but also help address labor shortages in the skilled trades. With a shrinking skilled workforce and increasing demand for efficient, cost-effective solutions, the industry is shifting its focus toward easier, faster and more user-friendly installation techniques. We anticipate advancements in prefabricated or modular tile systems, improved setting materials that reduce installation time, and potentially even interlocking porcelain solutions. Additionally, automation and robotic-assisted installation could play a growing role in commercial projects, helping to streamline labor-intensive processes.”

Also at the higher end is some small-format tile, which is primarily used on walls, though Maslowski reports a current trend toward utilization in flooring installations to create eclectic looks.

“I would say wall tile is one of the strongest categories [in terms of growth],” Godlewski says.

Most of the smaller formats are imported, as domestic manufacturers look to optimize their capacity.
“There are a couple of products that are going to be harder to source, like mosaics,” Maslowski says. “We get a fair amount from Mexico today, but they’re not a huge amount of what we sell. We would have to pass along the price increase or move it somewhere.”

The lower end is where price increases are harder to absorb, and such inventory primarily goes to homebuilders. While Lundgren says a loss of lower-priced material from India or Mexico could push some to use domestically made porcelain, homebuilders are facing price increases on virtually every front. Citing the new tariffs Trump has proposed on Canadian lumber, he says, “That’s an extra $10,000 per house, so the builders are going to say, ‘What can we do cheaper?’ and then they might look at other floorcoverings.”

Rubio notes that those in the market for low-cost products will always find a way to procure them at the best possible price. “When windows or other parts of the home are 30% higher, they’re like, ‘Okay, there is no other option,’ but in flooring, there is always someone ready to do it cheaper than you,” he explains. “I don’t think we’re ready to produce entry-level products in the U.S.”

Efficiency in operations is like a jigsaw puzzle of the different sizes able to be produced simultaneously, with an eye on the profitability of each. Many U.S. operations are moving to larger sizes, the most prevalent being 24”x48”, though additional formats are coming online as well. While Lundgren estimates 12”x24” accounts for 60% of what is sold domestically, he notes that Indian imports offer a cheaper price, adding that now, 24”x48” is the most prevalent size coming from India.

He sees possibilities in the domestic market for 2cm pavers, which are growing in popularity as the outdoor-living trend continues. “A lot of plants use 2cm as a capacity filler because it’s thicker, so it keeps their plants from being idle,” he says. “But when business is good, they don’t like making it, and so then it goes overseas.”

COMPANY UPDATES
In maximizing its operations, Dal-Tile upgraded its El Paso, Texas plant to be able to produce multiple products, and Maslowski says the 3D-texture capabilities “are a really big driver for us right now.” The upgrades have helped position the company well, should imports take a hit, he adds, though Dal-Tile also has the ability to source from sister facilities in South America and Europe. And, he says, while “we have been using more of our capacity than most, we have the ability to add more if demand comes inhouse.”

The company is adding capacity at its One Quartz plant in Dickson, Tennessee and last year debuted a streamlined tabletop display for the countertop offerings.

Also last year, its Daltile brand launched a rewards program for RSAs, which it is now tying in with parent company Mohawk’s program in other flooring categories. In February, the company’s global ceramic president Chris Wellborn retired, and Mauro Vandini was promoted to the role.

Just after Surfaces, Crossville’s parent company, AHF Products, announced that president and CEO Brian Carson was leaving the company, and CFO Brent Emore was stepping in as interim CEO.

A month later, the company announced the reorganization of its commercial sales teams, unifying its Armstrong Flooring, AHF Contract and Crossville brand reps.

“The timing of combining our commercial team fits really well into taking advantage of the fact that we’re a domestic manufacturer,” says Catherine Del Vecchio, who joined AHF as vice president of marketing in October, referencing the tariffs expected on imports. “This way, we’ll have more feet on the ground to cover more accounts.”

Calling it “the next big thing” in the tile world, Scott Jones, head of product development for Crossville, says the brand’s recently released FeatherSoft finish will evolve across more product lines. The integrated treatment offers a silky hand when dry but transforms into a grippy slip-resistant surface when wet.

Upcoming product releases will also build on the more traditional definition of texture, which Jones says is growing in importance in the market. Additionally, Crossville will begin importing 2mm porcelain panels that are lighter than its current 3mm sourced offerings, providing logistical benefits.

In late February, Del Conca USA president Paolo Mularoni passed away suddenly at the age of 45. Part of the third generation of family-owned parent company Ceramica del Conca, he founded the U.S. operation with his father in 2014.

“Every conversation I have with people is like, ‘We have to do better to honor Paolo and show him that respect,’” Rubio says, adding that Paolo’s brothers, Davide and Marco, will take the helm.

Though its parent company is in Italy, 95% of what Del Conca USA sells is produced at its Loudon, Tennessee factory. American flags now emblazon boxes of product to communicate the ‘made in America’ positioning.

In 2020, Del Conca USA began overhauling and expanding its portfolio, and Rubio says the factory is “very well positioned right now.” Next year, it will begin manufacturing 3D-textured products thanks to new technology that allows for a more realistic representation of the natural inspiration materials, like stone.

In honor of MSI’s 50th anniversary this year, it is launching more products than ever. Shah highlights the realistic 3D surface textures introduced in last year’s Cordova and Malahari porcelain collections as illustrative of MSI’s ongoing commitment to innovation.

Noting the overwhelming number of options consumers face, he says the industry needs to continue to use technology to better inspire customers. “With AI and virtual reality, I’m sure we will find ways to make this easier on the consumer,” he adds. “We are investing a lot in both.”

As the company continues to grow, it recently opened a new distribution hub in Norfolk, Virginia. Additionally, it opened showrooms/distribution centers in Las Vegas, Nevada; Orlando, Florida; Nashville, Tennessee; Omaha, Nebraska; Jacksonville, Florida; Grand Rapids, Michigan; and Mascouche, Quebec, a suburb of Montreal.

Stonepeak has been investing in its Crossville, Tennessee plant and, following a $10 million to $12 million infusion over the last few years, can now make virtually the same quality products it sources from its sister facilities in Italy, where its parent company, Iris Ceramica, is the fourth-largest ceramic group. With Stonepeak’s business centered on commercial and high-end residential, a substantial portion of its sales are large porcelain panels, including vibrant blue and pink marble looks, which the plant not only produces but can also polish onsite.

Another major capital expenditure will be announced at Coverings that Narvaez says “will position us basically for the next 20 years.” Last year, in conjunction with Stonepeak’s 20th anniversary, it reorganized its sales teams and debuted a new logo, and Narvaez says this has strengthened its position in the market.

Earlier this year, Stonepeak entered a partnership with Nemo Tile + Stone for distribution of its domestically made 60”x126” 12mm panels for countertop applications.

Earlier this year, Panariagroup USA began operation of a state-of-the-art polishing line at its manufacturing facility in Lawrenceburg, Kentucky. With the introduction of this technology, both Florida Tile and Panaria Ceramica have reduced prices on polished SKUs, which were previously imported from sister factories in Europe, Pesce notes.

“This innovative technology utilizes a sophisticated dry glaze application process and advanced polishing heads, delivering a flawless, polished surface that is highly resistant to stains and harsh cleaning chemicals,” says Pesce, who was appointed CEO of Panariagroup USA in 2023. “This investment aligns with our strategy to optimize production and stay ahead of industry demands.”

At Coverings, it will introduce Dry-Fix, a new technology that replicates the look and feel of natural marble or stone.

Last year, Panariagroup launched a major expansion of its distribution portfolio by unifying all of its brands under one umbrella. In addition to Florida Tile and Panaria Ceramica, the Italy-based company comprises Cotto d’Este, Love Tiles, Magres, Gresart, Lea Ceramiche and Blustyle.

A recent capital expenditure upgraded Portobello America’s technology to enhance the textured applications possible for both floor and wall tile, which will be a focus of its Coverings debuts.

Having opened almost two years ago, the company will soon add another floor tile kiln. The capital expenditure will bring the Baxter, Tennessee factory’s total capacity to 128 million square feet between the two floor tile kilns and one wall tile kiln. Brand manager Veronica Gripp adds that the plant has room to expand again, as well.

The new presses being installed in conjunction with the new kiln will be capable of handling larger sizes, and the company will begin domestically producing 36”x36” and 48”x48” formats.

Following the successful completion of phase one, last year the company underwent several leadership changes, including the appointment of a new CEO, João Oliveira, who previously served as CEO of Portobello in its native Brazil.

Wonder Porcelain will debut its first wall tile offerings at Coverings. “The modular wall tile category is as strong as ever in the U.S., and it continues to grow,” Godlewski says.

The sourced lines, one from Spain and the other from the U.S., are also seen as a tool to help streamline projects for Wonder’s distributor partners. The imported one features a hand-molded look in line with the high-end artistic category, and the other will complement a new flooring line.

Additionally, Wonder will introduce two new sizes in conjunction with its first colorbody porcelain collection, which capitalizes on the growing popularity of cement and limestone looks. Godlewski says the new 16”x32” and 32”x32” formats offer a more premium look but are in line with traditional installation costs.

In his new role, which he started in October, Godlewski is focused on forecasting in line with product trends while highlighting Wonder’s domestic positioning, and the company is increasing production at its Lebanon, Tennessee factory.

Coverings ambassador and celebrity interior designer Jennifer Farrell has partnered with Emser for two exclusive new tile collections, Eclissi and Metamor, part of the Livable Luxury by Jennifer Farrell line. Inspired by handcrafted artisan heritage but with modern aesthetics, the small-format porcelain collections “truly resonate with today’s design trends,” says Kathy Greene, director of brand strategy and communications.

Last spring, Emser hired Jim Parello as executive vice president of sales to help with improving efficiencies and increasing revenue.

Citing installation availability and cost as among the most pressing issues for the category, Dunn notes that Happy Floors and Stone Source will soon launch a new technology to help simplify installation. “Ultimately, the company that successfully develops a game-changing solution to simplify tile installation-while maintaining quality and durability-will secure a leading position in the market,” she says.

Additionally, the brands have been working to refine their product portfolios to align more strategically with market demands, while also creating more synergy between the two. With Happy Floors serving the remodel market and Stone Source focused on commercial work, this can be achieved through assigning different colorations or sizes to each, for example, Dunn explains.

As Happy Floors looks forward to its 40th anniversary in 2027, it will soon debut a new logo, among other operational changes. In late March, Glenn King was hired as its new executive vice president. And last year, parent company Paramount Global Surfaces brought on Kory Bowling as its new president and CEO.

Copyright 2025 Floor Focus 

Related Topics: CERAMICS OF ITALY, Coverings, RD Weis, Daltile, Crossville, Armstrong Flooring, AHF Products, Stonepeak Ceramics, Mohawk Industries