Stifel Comments on LVT Trends in Response to Chinese Tariffs
St. Louis, MO, October 29, 2018-The analyst firm Stifel released the following statement about activity in LVT, especially in relation to Mohawk, as a result of the Trump administration’s tariff on Chinese-made flooring, expected to rise from 10% to 25% at the start of 2019,
“The bad news is imports have increased as the U.S. resellers have sharply increased sourcing in an effort to beat the tariffs. In the near term, LVT may be accounting for virtually all of the industry’s growth, putting pressure on every other type of flooring. Mohawk is making progress producing LVT domestically, and we expect the company will increase its sales of LVT in 2019 meaningfully. In the meantime, there is pressure on Mohawk’s competing product types, resulting in discounting. Should tariffs go to 25%, we should see the tide turn in Mohawk’s favor as we progress through next year but the pressure builds before it wanes.”
To read Stifel’s full statement regarding the outcomes of Mohawk’s Q3 earnings release, click here.
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