If you’ve been wondering why tile prices seem to be shifting—or why you’re suddenly seeing “tariff surcharges” on invoices—you’re not alone. Global trade conditions have become increasingly unpredictable, with tariffs, currency fluctuations, and international negotiations all contributing to the cost of imported goods. For a company like Tile X Design, with over 25,000 products sourced from around the world, these changes can’t be addressed with simple, once-a-year price updates.
In this post, TXD Owner Dan Emmel walks us through why tariff surcharges are being used instead of across-the-board price adjustments, how international trade dynamics are influencing costs, and what that means for you as a customer. From historical precedents to current challenges—and even a bit of good news—we aim to bring clarity to a complex issue while reaffirming our commitment to transparency and partnership.
Why are you using tariff surcharges rather than just adjusting your prices?
Our customers have over 25,000 products to choose from, and they are produced in many different countries subject to new and different tariff rates. European tariffs, for example, have already changed three times this year. Several other countries are still negotiating tariff rates. There is also a court case that could invalidate the new tariffs. That’s not all. The U.S dollar has lost over 10% of its value to the Euro and other currencies, prompting expectations of factory price increases. We will wait for tariff rates and our currency’s value to stabilize before we discontinue surcharges and return to price changes.
Why haven’t we seen tariff surcharges before?
We have seen surcharges. In the 1970’s the Arab oil embargo caused fuel shortages and price spikes. The trucking industry implemented fuel surcharges to offset unpredictable fuel costs. In the 1990’s surcharges became more common.
Why are you putting a tariff on stocked materials?
We are not putting a tariff surcharge on products produced in the U.S. We have been paying an extra 10% tariff on European tiles since April and will pay an extra 5-7% tariff going forward, plus processing fees. We need to pass along most of those extra costs.
The new tariffs are placed on the cost of goods. Shouldn’t the tariff on the sales price be less?
Yes, but tariff price increases and timing will vary. A product’s country of origin, a company’s inventory level, and business type (wholesale vs. retail) are some of the variables. Our customers will see a 5% tariff surcharge on our 2023 and 2024 European prices. Tariff surcharges on tile from China, Brazil, India, and other countries will be higher, mostly in the 7-10% range.
I agreed to a higher tariff surcharge when I placed my order. Now that the rate has been reduced to 5% can I get a refund?
We are sorry, but the prices in effect at the time of your order will prevail. For the past 3-4 months, we have paid extra tariffs of 10% or more on orders placed at the regular price. (Tariffs are paid by the importer when the product arrives at port.) Now, for a few months, we will collect a little more than we pay.
Is there any good news to share?
For many years, European tile tariffs have been in the 8-10% range, and those rates have already been factored into our pricing. That makes the new 15% flat rate a smaller increase. Products that were being tariffed at 1 or 2% and are now being adjusted to the new 15% rate will see bigger price or tariff increases. A 5% tariff increase is like a typical annual price increase, and that means less value engineering for builders and contractors, and tile projects installed closer to budget.
Is there anything else I should know?
TXD offers the most incredible variety of products because we want to maximize your design options. While that complicates our work, we are always trying to simplify yours and make it more fun! We thank you for your understanding and continued partnership. We hope that tariff and currency stability return so that we can remove surcharges in the coming year.