Calls for fair trade in the flooring industry are louder than ever, but according to market participants like Lamett Europe, the long-term impact of European and US measures is worrying.
Bruno Descamps, CEO of Lamett Europe, expresses his concerns about the recent trade measures from the European Union against Chinese wood flooring producers. "Our industry became the subject of an anti-dumping investigation. The outcome surprised many: hundreds of Chinese companies have stopped production, while European importers are struggling to keep their heads above water," Descamps said. He doubts whether the measures actually lead to fair trade: "A lot of these actions are politically motivated. In the end, it is the end consumer who pays the price."
Bruno Descamps, CEO of Lamett Europe, takes a selfie during a trip through China.
In the past, the European Union has frequently imposed anti-dumping duties on Chinese floor manufacturers, designed to counter unfair price competition. While these measures appear to offer some short-term benefit to European producers, they have also led to supply chain disruptions, higher purchase prices and reduced product availability for many importers. Concerns about their impact extend beyond Europe.
Trade policy has also been sharply tightened in the United States. On 2 April, the US government announced new import tariffs on various goods from China, Mexico, South Korea and Vietnam, among others. According to a recent analysis by commercial bank Truist, the US flooring market has a particularly high dependence on imports: by 2023, as much as 55% of all flooring units were imported. LVT (Luxury Vinyl Tile) and ceramic tiles in particular have a very high import ratio: 81% and 64% respectively.
Truist points out that the majority of LVT imports come from China and Vietnam - countries hit hard by the new tariffs. Although Vietnam has taken market share from China in recent years, it too will now face significant trade barriers. "Almost 90% of imported LVT will be subject to hefty tariffs," the report said. Alternative manufacturing countries are limited, so a quick supply chain shift will not be easy.
The impact of these trade measures is still difficult to fully assess, according to Truist. Currency exchange rates, transport costs and consumer behaviour could still significantly influence the final impact. Moreover, many importers have stockpiled extra in the run-up to the duties, meaning that price effects will only become visible in a few months' time.
According to Bruno Descamps, it is time to reconsider whether these trade barriers really contribute to a sustainable, fair market: "Instead of erecting walls, we should encourage creativity and cooperation - in the interests of producers and consumers alike."
Sources: LinkedIn and FloorDaily