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TRANSCRIPT
00:00 Brought to You by Quantra
00:19 Intro
00:28 Safeguard Engineered Stone Tariffs in Effect
02:29 A Word from Quantra
03:41 $47 Million Verdict in L.A. Silicosis Trial
05:36 Caesarstone 2Q 2026 Results
08:22 Good 1H Performance for Brazil Natural Stone
10:22 Cambria Expands Philly-Area Facility
11:30 IPS Under New Ownership
13:38 Stone Vietnam in Hanoi This December
15:35 Outro
16:03 Brought to You by Quantra
00:19
Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.
00:28
Starting last Saturday, most engineered-stone imports faced tariffs in the 25% to 50% range as President Donald Trump approved the “Safeguard” request made by some of the nation’s surface manufacturers.
The new rate/quota system sets annual quarterly square-foot target amounts for imports. For 2026-2027, the annual target level is approximately 140 million ft2, divided every 90 days from Aug. 15 to a level of 35 million ft2.
Products arriving in the United States before the target get a 25% tariff; those above the target amount will be charged a 50% tariff. The target level will increase every year, and the tariff percentages will decrease before the scheduled end of the program in August 2030.
The new tariffs, approved by President Trump on July 31, will be added to others imposed by the United States, including the recent 10%-12.5% forced-labor enforcement tariffs and unfair-trade tariffs assessed in the past eight years on quartz-surface imports from China, India and Turkey.
The tariffs will apply to all engineered-stone products, from slabs to pre-cut pieces assembled on furniture.
The new tariffs result from a petition filed by the Quartz Manufacturing Alliance of America (QMAA) last September asking for federal-government relief due to increased imports from 2020-2024.
A limited number of countries will be exempt from the tariffs due to free-trade agreements – or FTAs – with the United States. Those countries include Canada, South Korea and Mexico. The tariff will also not apply to more than 100 countries the U.S. defines as developing economies.
During the first half of 2026, 7.8 million square feet of U.S. engineered-stone imports came from exempt countries, or 7.8% of the total 102.8 million ft2 of quartz-surface imports.
03:41
A Los Angeles County jury late last month found multiple parties responsible for the death of a fabrication worker due to silicosis and silicosis-related illnesses. However, Dal-Tile, the only remaining manufacturer in the lawsuit, is responsible for only 6% of the $47 million in damages.
The July 31 verdict came after more than two months of trial sessions in a case brought by Evelin Liseth Gonzales Rodriguez, the widow of Wilmer Ruben Martinez Parades.
The jury found Dal-Tile LLC and its subsidiary, Dal-Tile Distribution, responsible for claims involving areas of negligence and product liability, along with other claims involving Parades’ former employers, Art in Art Marble/Granite and Precious Stone Inc. Both were located in North Hollywood, Calif.
However, the jury didn’t find clear and convincing evidence that the Dal-Tile companies “engaged in conduct with malice or oppression that was committed or authorized or approved by an officer, director or managing agent.”
The $47 million award for damages included more than $410,000 for medical care and income loss, as well as $20 million for Parades’ pain-and suffering before his death, with the remainder for both economic and non-economic damages to his family following his death.
The jury found Art in Art Marble/Granite and Precious Stone each 35% responsible in the case. Both companies have since closed.
The jurors also assigned responsibility of 6% each to Architectural Surfaces Group LLC/Pental Quartz; Caesarstone, Camebria and Cosentino. The law firm representing the Parades family noted that claims with those four companies were resolved before the verdict.
05:36
Caesarstone Ltd. is still in the process of trying to move its bottom line into the black by the end of the year, but outside factors may make that goal more difficult than expected.
The company’s second quarter 2026 report shows a year-over-year increased gross margin, and a reduced net loss from second-quarter 2025, according to figures released Aug. 5. However, two factors outside Caesarstone’s control – increased U.S. tariffs and continued growth of silicosis-related lawsuits – may have a greater impact than its streamlining strategy.
Caesarstone CEO Yos Shiran said he remains confident that recent tariff developments will still allow the company’s operating model to deliver long-term value.
“While revenue continues to be impacted by competitive dynamics and soft market conditions, most notably in North America, the structural changes we have implemented by creased a leaner, more flexible operating model to improve our offering to customers,” Shiran said.
Net revenue for Caesarstone worldwide in 2Q 2026 came to $96.6 million, down 4.4% from the same time last year. However, net loss also declined from $18.6 million in 2Q 2025 to $15.6 million this year.
In the United States, Caesarstone’s largest market, revenue dropped by 14.1% to $42.6 million in this year’s second quarter. Canada’s $12 million in sales showed a 17.4% decline from last year. However, Australia showed a 22.1% increase to $20.3 million with increased acceptance of the company’s crystalline-silica-free ICON engineered stone. Israel, Caesarstone’s home market, reported a 60.8% gain.
Regarding the imposition of the “Safeguard” rate/quota tariffs on non-U.S.-manufactured engineered stone, Sheeran said the company is still assessing the potential impacts on its business.
“However, these developments do not change our strategic priorities, and we remain confident that our operating model positions us well to deliver long-term value,” Shiran said.
The company had a bit of good news on the tariff situation. The elimination of the International Emergency Economic Power Act (IEEPA) levies approved by President Donald Trump last year generated a $2 million refund in previously paid tariffs.
Also potentially weighing on Caesarstone’s bottom line – it has been named by 800 individuals on claims of silicosis-related injuries, with 600 of those cases in the United States.
0822
Brazil’s natural stone industry closed the first half of 2026 with $711.1 million in exports, a result only 4.2% lower than the same period last year.
The data comes from the Brazilian Natural Stone Association Centrorochas. Despite the negative cumulative result, the sector showed a significant recovery through the second quarter, substantially reducing the losses recorded at the beginning of the year.
The trend culminated in June, which posted the highest monthly export revenue in the industry’s history. The total of $165.2 million is a 34.1% increase from June 2025.
The first-half performance also highlights a significant shift in the composition of Brazil’s natural stone exports, with quartzites accounting for 60.3% of total export revenue, up 6.7% from the first half of 2025, and setting a new record for the segment.
By contrast, traditional materials recorded declines, including granite, down 18.4%, marble, off 26.7% and slate, down 7.0%.
Much of the increase in quartzite can be attributed to tariffs enacted by the Trump Administration. After an appeal, half of the 50% tariff enacted in 2025 exempted quartzite and other calcareous stones. Although the U.S. Supreme Court threw out that tariff late last year, a new 301 tariff that went into effect July 22 contains the same exemptions. The new 301 tariffs are at a 25% level.
At the same time, Brazilian officials believe the consolidation of quartzite also reflects a transformation in the international market, specifically with advanced processing technologies. Brazilian quartzite has become a valued material for high-end architecture, interior design and construction projects.
10:22
Cambria announces the grand opening of its new Philadelphia-area sales and distribution center in King of Prussia, Pa. The upgraded facility encompasses 32,500 ft2 and underscores the company’s commitment to meeting the growing demand for its quartz surfaces in the region.
Open to the public, the showroom features a range of designs in full slabs. The facility also offers an expansive library of samples and new kitchen and bath displays.
Also available at the facility are design visualization tools, and consultations with experts who can assist with matching surfaces to cabinets, paint, flooring and appliances. Hours are 8 a.m. to 5 p.m. weekdays.
Elizabeth Hurley, Cambria’s chief commercial officer, says the Philadelphia region has one of the most sophisticated and discerning design communities in the country, and the new facility should prove worthy of them.
“It lets us present our portfolio in the way it deserves to be seen,” Hurley says. “And, it creates the kind of immersive expert-guided experiences that turns a showroom visit into a project breakthrough for designers and homeowners alike.”
11:30
IPS Adhesives, the parent company of Integra Adhesives, is now part of Matrix Adhesives Group. The acquisition, announced July 27, splits off the adhesives part of Compton, Calif.-based IPS Corp. in a deal estimated to be worth slightly more than $100 million, according to The Deal information service from S&P Global.
The acquisition includes the Integra and Unika® brands in surfacing and the SCIGRIP Adhesives® structural line. Matrix will also gain expertise in methyl methacrylate (MMA) technology and color-matching technologies.
Scott McDowell, IPS Adhesives president, will remain with the company as part of the new management.
“Joining Matrix represents an exciting milestone for the IPS Adhesives team ” McDowell said. “Becoming part of the Matrix family will allow us to preserve our strong market position in MMA solutions, while gaining the scale, resources, and global platform to support our growth plans.”
“This strategic partnership enhances our ability to deliver differentiated, value-added solutions to our customers,” said DJ Johnson, Matrix Adhesives Group CEO. “We are pleased to welcome the IPS Adhesives team to the Matrix family of ‘passionate people creating bonds.’
IPS Corp. went through several private-equity-group ownerships before finally ending up with Centerbridge Partners LP in 2021.
Matrix Adhesives is a portfolio company of New York-based TruArc Partners LP. The private-equity firm, focused on middle-market investments in business services and manufacturing, acquired Matrix Adhesives in March from Minneapolis-based private-equity firm Goldner Hawn.
13:38
Ceramics Vietnam and Stone Vietnam, the leading platform for ceramics and natural stone in Southeast Asia, will open its doors Dec. 2 for a three-day run in Hanoi.
Scheduled for Dec. 2-4 at the International Center for Exhibition (ICE), the event will bring together suppliers, manufacturers, buyers and industry professionals from across the ceramics and natural stone sectors.
Organized by Messe München Singapore, the exhibition combines the former ASEAN Ceramics and ASEAN Stone events into a single platform covering the entire value chain – from mining and industrial minerals to manufacturing technologies, finished products, architectural surfaces and construction applications.
The 2026 show is expected to feature more than 350 exhibiting companies and welcome more than 5,000 trade visitors. International pavilions from Italy, Germany, China and India are among those slated to attend.
In addition to the exhibition, visitors can participate in a program of technical conferences, business matching sessions, hosted buyer meetings and networking events designed to facilitate knowledge exchange and commercial partnerships.
Vietnam is rapidly strengthening its position as one of Asia’s leading manufacturing hubs,” says Robert Schonberger, global industry lead for Messe München. “Ceramics Vietnam and Stone Vietnam provide an international platform that connects technology providers with manufacturers, buyers and project decision-makers, supporting investment and long-term industry collaboration across Southeast Asia”
For information on the show, email aseanceramics@mmiasia.com.sg, or contact organizers through Whatsapp at +65 8712 3652.
15:35
Remember, for the latest information on hard surface imports, go to Hard Surface Report at www.hardsurfacereport.com. For a transcript of this broadcast, go to www.radiostoneupdate.com. I’m K. Schipper for Radio Stone Update, and we’ll see you here again soon.
