The U.S. Commerce Department said Tuesday that it would impose a preliminary tax rate of 104% to 222% on ceramic tiles imported from China, which were found to receive unfair subsidies.
In a statement, the Ministry of Commerce said the decision would affect imported tiles valued at about $483.1 million in 2018.
After receiving a joint petition from eight ceramic tile manufacturers in the United States, the Ministry of Commerce launched a countervailing and anti-dumping investigation into imported ceramic tiles from China in May.
The Ministry of Commerce has yet to issue a preliminary ruling on the anti-dumping investigation, but said its original proposed anti-dumping duty rate is 127% - 356%, which can be applied on the basis of countervailing duty.
At present, the United States also levies a 25% punitive tariff on Chinese ceramic floor tiles and wall tiles under Article 301, which will be raised to 30% on October 1. Chinese tile is a popular commodity in home chain stores such as Home Depot (HD.N), Lowe's (LOW.N) and Floor & Decor (FND.N).
The U.S. Department of Commerce said it would impose a preliminary countervailing duty of 222.24% on ceramic tiles from Temgoo International Trading Ltd and 103.77% on other Chinese ceramic tile exporters and manufacturers.
The final cut of the survey will be released around January 21, 2020. The U.S. International Trade Commission (ITC) is also conducting another investigation to determine whether U.S. producers have been harmed by Chinese imports.
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