Stalled India-US Talks Leave Ceramic Tile Tariffs in Limbo — and Open a Window for Spain
Tile Wars · markets · · Tile Insights Hub
With New Delhi's negotiators heading home empty-handed, Indian tile exporters face the prospect of even steeper US duties this summer. European producers could be the unexpected beneficiaries.
The much-anticipated India-US trade pact is once again on hold. After three days of talks in Washington last week, India's twelve-member delegation flew back without signing the draft agreement that has been sitting on the table since early February — and the ceramic tile trade is one of the sectors most exposed to the fallout.
For tile distributors on both sides, the status quo is uncomfortable but manageable: Indian-origin tiles currently enter the US under a 10% additional duty on top of the 8.5%–10% MFN rate, the regime put in place by the Trump Administration the day after the Supreme Court struck down the IEEPA tariffs on February 20. The draft deal that India is hesitating to sign would replace that with a flat 18% across-the-board tariff — a meaningful jump that helps explain New Delhi's caution.
The catch is that holding out may end up being more expensive than signing. The US Section 301 investigation into India's trade practices is due to wrap up in June, and Washington has a clear precedent for what comes next: the 25% Section 301 tariffs slapped on most Chinese goods in 2018 are still in force eight years later. The bilateral numbers help explain the political pressure — US imports from India hit $103.8 billion in 2025 (up 18.9%) against just $45.6 billion in exports, leaving a $58.2 billion deficit, 27% wider than the year before.
What it means for Castellón. Spanish manufacturers have spent the past two years watching Indian competitors gain shelf space in the US through aggressive pricing. A Section 301 escalation in June — or even a signed deal at 18% — would erode that price advantage materially. Combined with Morocco's recent anti-dumping probe into Indian tiles and the EU's own ongoing scrutiny, the global net around Morbi's exporters is tightening. For European producers with established US distribution, the second half of 2026 could open a real commercial window, provided they are ready to move on logistics and inventory.
The Ceramic Tile Distributors Association (CTDA), which has been tracking the negotiations closely, has flagged the uncertainty as a planning headache for US importers heading into the summer buying cycle.
Source: Floor Daily