Shaw's Baucom Requests Chinese Tariff Relief on LVT
Washington, DC, August 27, 2018-In his testimony to the Office of the U.S. Trade Representative (USTR) concerning the proposed tariffs on Chinese LVT last Friday, Tim Baucom, executive vice president of Shaw Industries, request tariff relief on three bases.
1. The proposed tariff will harm the U.S. flooring industry and American consumers.
2. American consumers will pay higher prices for LVT because there is insufficient alternative capacity to replace Chinese imports, notwithstanding significant investment in U.S. production.
3. The proposed tariff on LVT will not advance the Administration’s goal of helping U.S. high technology companies that China seeks to replace in China and dislodge in the rest of the world through its “Made in China 2025” plan.
According to Market Insights, consumption of LVT, including both flexible and rigid core, in 2018 is $2.7 billion (wholesale value) and approximately $2 billion of that, or 74%, is imported-primarily from China. Almost all rigid core products (60% of the total) come from China today.
Shaw is the largest U.S. supplier of LVT, accounting for 34% of share. Other suppliers, in order of percentage of capacity, include IVC/Mohawk at 12%, Mannington at 9%, Armstrong at 4%, Nox at 2% and both Congoleum and Tarkett at 1%. The remaining 36% is shared among other players.
Currently, 60% of the LVT consumed in the U.S. is rigid construction; 38% is flexible; and 2% is another format.