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TRANSCRIPT

00:35

President Joe Biden has pressed the pause button on a possible 25% tariff on a variety of goods from Turkey, including some natural stone and ceramic tiles – at least until late November. The tariff is in response to a digital services tax that Turkey and five other countries have imposed. The United States opposes such taxes as inconsistent with international-tax principals and a burden to U.S. business.

 The Office of the U.S. Trade Representative – the USTR – announced last month that the 25% tariff would be imposed, but then suspended for six months. The other countries involved are Austria, India, Italy, Spain and the United Kingdom, although hard surfaces aren’t included in the targeted products from any of the others. 

 After public hearings in May, the USTR made a small change in the list of hard surfaces covered in the proposed tariff, dropping one of the porcelain categories. Our sister publication, Hard-Surface Report, shows the porcelain that was retained under the tariff showed a 2020 value for that category from Turkey at slightly more than $105 million.

 The natural stone slated for possible inclusion under the tariff includes selected categories of marble, travertine and other calcareous stone and remains unchanged. According to Hard-Surface Report, the covered material had an imported customs value of $149 million, or only 8.2 percent of the natural stone imported from Turkey last year. The USTR is expected to announce its decision the Monday following Thanksgiving.

02:19

In other tariff news, there won’t be additional duties on European hard surfaces as part of a long-running transatlantic trade battle. The USTR announced last week that it will put off any tariffs on European Union and United Kingdom products as part of an airliner-subsidy dispute.

 Previously, the United States won a World Trade Organization ruling on unfair trade by the EU and UK by funding Airbus airliner construction. The USTR produced a long list of products that could face tariffs of up to 100%, and targets included most hard surfaces, except for marble and other calcareous stone. However, a new deal between the US, the EU and the UK declared a five-year truce on the tariffs and, in any case, delisted all non-airplane-related products.

03:12

New Orleans-based Triton Stone Group acquired all the assets of operation of Stoneway Supply LLC of Charlotte, N.C. in a transaction finalized June 5. Stoneway is a leading distributor of tools and supplies for the countertop-fabrication industry in Tennessee, North Carolina, and South Carolina, as well as online. 

 The acquisition of Stoneway Supply’s North American operation adds a storefront presence, seasoned van-based sales reps and an established online presence to Triton’s current offerings of tools, supplies and equipment for the natural-stone and quartz fabrication industry. Triton is working toward a seamless transition for Stoneway Supply’s customers.

Triton Stone Group is a family-owned, women-run business with 22 locations throughout the Southeastern United States. The company imports and distributes natural stone and quartz and has a growing tool and sink sales division. It operates online at www.tritonstonetools.com

04:10

EMERSON SCHWARTZKOPF: This is Emerson Schwartzkopf. Worldwide bottlenecks in shipping and supply may be catching up to the flow of hard surfaces into the United States. The April total of 405 million dollars in import values of natural stone, quartz surfaces and porcelain is certainly impressive – it’s the best month since August 2018 – but it’s only two percent better than this March.

 Much of the gain in April came from porcelain imports of $96.7 million dollars, jumping 15 percent from March totals. It helped offset a four-percent month-to-month decline in quartz slab at $139 million dollars, and an eight-percent drop in granite value at $60.1 million dollars.

 Actual volume for granite in April of 102,560 metric tons showed an 11.3 percent drop from March. Quartz-slab traffic through U.S. ports-of-entry, meanwhile, posted a month-to-month increase in April … but only of one-half of one percent.

 You can get all the information on April imports with the next edition of Hard-Surface Report. Watch your inbox for the link to the new issue later this week.

05:31

K. SCHIPPER: Although North America saw its first major hard-surfaces trade show with TISE in Las Vegas last week, the Brazilian organizers of Cachoeiro Stone Fair announced earlier this month that they are cancelling that event for 2021. The fair had been scheduled for Aug. 24-27 in the hub of the natural stone quarrying and processing region southwest of Vitoria in the Brazilian state of Espirito Santo. 

 In making the announcement, the organizers of the event, Milanez & Milaneze, stated the fair would not be held due to the current situation and forecasts of government bodies for upcoming months about the COVID-19 pandemic. Brazil remains hard-hit by the disease. The decision was made in tandem with the event’s sponsoring entity.

 In its statement announcing the cancellation, Milanez & Milaneze acknowledged the economic importance of the fair. However, the statement went on to say, “After analyzing the information and data available so far, we believe that it is a more prudent decision to postpone the fair to the next year.” The 2022 version of the show is scheduled for Aug. 23-26.

 Due to the pandemic, the 2020 version of the fair was also cancelled. In the interim, Milanez & Milaneze, along with Brazilian trade groups, are holding online Stone Summit sessions and other activities. 

 The 2019 version of the fair – the 30th annual event – drew more than 17,000 attendees from across Brazil and 16 other countries.

07:06

Austin, Texas-based Vadara Quartz Surfaces announces it is now in new and exclusive distribution and sales partnerships with the EUROPEAN Granite & Marble Group and MARVA divisions of Trajus Surfaces. Vadara, a division of U.S. Surfaces, will now be represented by Addison, Texas-based Trajus properties in the eastern United States.

 Vadara quartz surfaces are now available in EUROPEAN’s New Jersey, New York, and Pennsylvania territories, as well as from MARVA in its Delaware, Maryland, Virginia, West Virginia and District of Columbia territories.

 Mario Persico, Trajus president and chief commercial officer, says the decision to form the partnership was an easy one because of Vadara’s world-class product and top-notch customer service. Earlier this year, Vadara released six new colors inspired by marble and quartzite and plans to release additional color options in the fall. Ed Rogers, executive vice president of U.S. Surfaces, calls Vadara a fashion-forward, client-centric brand with a commitment to both high quality and high-aesthetics. 

 In other news from around the industry…

 8:23

Orange, Calif.-based M S International Inc, recently partnered with the Orange Senior Center in donating 100 refurbished iPads to adults over the age of 50. The donation, through MSI’s charity arm of the Sarva Mangal Family Trust, aims to help seniors transition to a virtual environment during COVID-19. Additionally, MSI volunteers will conduct seminars for the seniors, teaching them to use the technology to its fullest capacity. The Sarva Mangal Family Trust was established by MSI’s founders in 1994. Sarva Mangal is a Sanskrit word meaning “Goodness to All.”

09:06

The Gary Sinise Foundation and its Restoring Independence Supporting Empowerment – or RISE — program has completed its 36th home for a special needs veteran with help from Natural Stone Institute members. They provided both materials and fabrication services for a home in Poway, Calif., adapted and built for U. S. Navy Senior Chief Petty Officer Kenton Stacy and his family. Stacy, an Explosive Ordinance Disposal technician, was seriously injured by an Improvised Explosive Device or IED while serving in Syria in 2017. Companies wishing to participate in future RISE projects should contact Pam Hammond at pam@naturalstoneinstitute.org/RISE.

09:55

And, a marble exporting firm from western Turkey is looking to the past to solve a very real present-day problem. Because of the shortage of traditional freight containers as the world’s economy recovers from COVID-19, the company has turned to wooden boxes to solve the problem of getting its materials to the United States. Approximately 11 tons of processed marble, which would normally be sent in 400 containers, was instead shipped via a bulk freighter in wooden boxes with a pallet-like design. DN Mermer Chairperson Murat Yener says this is the first time exports to the U.S. shipped in wooden boxes, but it’s expected the application will become widespread.

 For the latest in industry news, you can also visit our online newsletter, Slab and Sheet, which is available on alternate Wednesdays. For more on U.S. imports, go to our monthly magazine, Hard-Surface Report. And, for notes on this episode and a full transcript, go to www.radiostoneupdate.com

 I’m K. Schipper for Radio Stone Update and we’ll see you here again soon.