India's US Export Problem Is Getting Bigger. Quartz Is The Latest Flashpoint

Trade tensions between India and the US have widened further after Washington imposed new restrictions on imports of engineered stone slabs.

Quartz surface products, commonly used for kitchen countertops, bathroom vanities and other construction applications, have emerged as the latest Indian export category caught up in the US push to protect domestic manufacturers.

What has the US imposed on Indian quartz?

From mid-August 2026, the US introduced a multi-year tariff-rate quota (TRQ) on quartz surface products under Section 201 safeguard provisions. The four-year measure imposes a 25% tariff on imports within the prescribed quota, while shipments beyond the threshold face significantly higher duties of between 40% and 50%.

The tariffs are scheduled to decline marginally by one percentage point each year during the four-year period.

Despite the gradual reduction, the safeguard represents a substantial increase in the cost of accessing the US market for Indian and other overseas suppliers.

Why has India approached the WTO?

India has sought consultations with the US at the World Trade Organization (WTO) under the Agreement on Safeguards, challenging Washington's restrictions.

New Delhi's argument centres on whether the US has adequately established that rising imports directly caused serious injury to domestic quartz manufacturers.

India is also pointing to WTO provisions that can exempt developing countries from safeguard measures when their individual share of imports remains below 3%.

The dispute is part of India's broader effort to challenge US trade restrictions. New Delhi has previously taken WTO action over American tariffs affecting products including steel, aluminium and auto parts.

What exactly is a tariff-rate quota?

A tariff-rate quota combines an import volume threshold with different tariff rates. Unlike an outright quota, it does not completely prevent additional goods from entering the market.

In-Quota Rate: A lower duty applies to imports until a specified volume is reached. The US has initially set the aggregate in-quota limit at 140 million square feet, with a 25% tariff.

Above-Quota Rate: Once that threshold is exhausted, subsequent imports face a much steeper duty of 40% to 50%.

This structure allows some imports to continue while making shipments beyond the threshold substantially more expensive.

Why is the US targeting quartz surface imports?

The US International Trade Commission (USITC) concluded that a sustained increase in low-cost engineered stone imports had caused serious injury to American producers.

US manufacturers argued that imports from major suppliers, including India, Vietnam, Spain and Thailand, had increased competition, pressured domestic prices and squeezed profit margins. They also linked the import surge to risks for American manufacturing capacity and employment.

The safeguard therefore seeks to give US producers greater protection from overseas competition.

How important is the US market for Indian quartz exporters?

The US is a crucial destination for India's engineered-stone industry. India exports approximately $380 million worth of quartz surface products to the American market each year, while some estimates suggest around 95% of India's engineered-stone exports are ultimately destined for US buyers.

The sector supports hundreds of processing facilities across states such as Rajasthan, Andhra Pradesh and Telangana. Many of these businesses depend heavily on orders from American distributors, builders and construction companies.

That concentration makes the new US trade barrier particularly significant for Indian manufacturers.

What happens to exporters once the quota is exhausted?

The biggest challenge for exporters comes when the in-quota allowance is used up. Once the threshold is reached, additional imports become subject to the substantially higher 40%-50% tariff.

That can sharply increase the landed cost of Indian quartz in the US and weaken its competitiveness against alternatives such as granite, marble and porcelain.

US importers could respond by delaying orders, cancelling contracts or reducing purchases. Indian exporters, meanwhile, could face lower margins and underutilised processing capacity if they cannot redirect shipments to other markets.

Can India win the WTO challenge?

India has potential legal arguments under the WTO's Agreement on Safeguards, particularly around import thresholds, developing-country exemptions and the evidence required to establish serious injury.

However, any WTO dispute is likely to take considerable time. Dispute settlement proceedings can take years, while the WTO's Appellate Body remains unable to function normally because of an unresolved appointment deadlock.

That creates another complication: even if a WTO panel rules against the US, Washington could appeal the decision without a functioning appellate mechanism, effectively delaying enforcement.

For India, the WTO challenge could therefore serve as both a legal and diplomatic tool.

While the dispute plays out, exporters will still have to operate under the new tariff-rate quota and may need to seek alternative markets or negotiate commercially with US buyers to absorb the higher costs.