At Coverings 2025, which was held earlier this month at the Orange County Convention Center in Orlando, FL, industry leaders from the Natural Stone Institute (NSI) gathered to openly discuss their predictions on tariffs — a topic stirring concern and uncertainty across the stone and tile sectors. Moderated by Jim Hieb, NSI CEO and executive director, the panelists included:

• Evan Cohen of Quality Marble & Granite and current NSI president
• Jeff Erickson of Cutting Edge Countertops, NSI vice president
• Katie Jensen of Triton Stone Group, immediate past NSI president
• Rick Stimic of BB Industries CEO and a director of the Natural Stone Foundation

The session began with Hieb asking Cohen, a well-known distributor with facilities in Ontario, CA, and Bullhead City, AZ, how his company is navigating the turbulent tariff landscape? “That’s a big question,” he said. “Honestly, with importing, we don’t really know what’s going to happen. Last week, I asked my Customs attorney what are some things I should bring up about tariffs? I wanted to get his perspective. His response was great. He said he had just been at a Customs convention where experts laid everything out, but by the time he boarded his flight home, everything had already changed.”

According to Cohen, contingency planning is essential. “We have to constantly discuss what could happen and be ready with plans for what might be. It’s created challenges across the board, not just for us, but it is also creating a ripple effect with our factories. We’re seeing massive orders now that lead to delays, and we expect shipping slowdowns, especially with Chinese shipments already being affected.”

Hieb asked Jensen what is some of the best advice about tariffs that she has received from either people within her company or her suppliers or customers. “The best advice I’ve gotten is really to double down on clear communication,” she said. “Transparency is important. We’re in constant talks with both suppliers and customers. There’s bound to be misinformation in the market — some will raise prices immediately, others have inventory to buffer the impact. Over the next 90 days, it’s going to take a lot of navigation to see where things settle. Maybe you just hope you’re lucky.”

Hieb also asked Erickson, a fabricator, to weigh in on how his team is handling the pressure. “Our strategy, like during COVID, is to stay on top of price increases as soon as we can,” he said. “If costs go up and you let it slide too long, you eat into your margin. We can’t afford that.”

What worries Erickson most isn’t the price adjustments, it’s the broader impact. “We’re in the Rust Belt. The second half of 2024 was slow, and we’re watching 2025 closely. My biggest concern is whether we’ll be able to sell countertops.”

Stimic, both a supplier of consumables and someone whose team is inside fabrication shops daily, offered a unique perspective on navigating tariff uncertainty. “There’s obviously disruption — we’ve heard that from everyone here,” he said. “But I think we’ve all been well-schooled over the past four years. Between COVID and supply chain breakdowns – there’s always disruptions. We basically have learned, like everyone in this room has, that you need a ‘war room’ approach inside your organization. Ask: What’s the impact today? What are competitors doing? How do we navigate this?”

Rick emphasized that as a national distributor facing varied competition across geographic areas and product lines, the dynamics are complex. “If you rush into decisions, as Evan said earlier, things can change hour by hour. The key is communicating what you’re doing, why you’re doing it and being ready to adjust.”

Hieb added a note of optimism to the discussion. “Today is the first day of Coverings,” he said. “This morning, on the show floor, I ran into friends from China, Italy and India — all of them said the same thing — the U.S. market is still their number one focus. We’ll ride out this storm.”

An audience member asked, “What’s the best resource for staying up-to-date on tariff rates and changes?”

Jensen fielded the question. “We use our Customs broker — that’s the easiest access. But even online, WhiteHouse.gov gives a very good job of detailed updates. And there’s solid reporting in outlets like The Wall Street Journal.”

Cohen added, “Honestly, some of my best information comes through the NSI and networking. We’ve got different groups where people are messaging and that gets forwarded around — constantly sharing updates and sending articles. I’ve also made a tight relationship with my Customs broker so they alert me directly when things shift — and they usually know first.”

Are Material Shortages Coming?

Erickson asked the suppliers in the room if a material shortage is on the horizon? “During COVID, not only did prices go up, but we simply couldn’t get certain products — the kiss of death for a fabricator. Are we looking at potential shortages now?”

Cohen answered, “I just heard that about 80 shipping carriers have been pulled offline, reducing capacity. That’s setting up another supply-demand issue. We all remember when freight went from $1,000 per container to $15,000 — that’s not impossible to see again. We’re in the middle of a massive global negotiation, and no one really knows where it will land.”

Jensen added, “There’s also the risk that you import material now under higher tariffs, but then 90 days later the tariffs drop back to zero and suddenly you’re sitting on high-cost inventory while the market pivots. Many importers, including us, are running super lean right now just to stay flexible.”

Domestic Producers: Can They Step In?

Another audience member asked whether U.S.-based manufacturers would benefit from the tariffs and increase production. Cohen explained that if they are sourcing raw materials from overseas, they are still exposed to rising costs. “Plus, even if manufacturing moves to the U.S., much of the needed equipment isn’t made here, so costs remain,” he said. “We saw during COVID that prices rose — tariffs could become the next justification for increases.”

Reid Kubesh, vice president of sales, stone products for Coldspring, representing domestic producers, shared: “Even if we wanted to ramp up, it’s not something you flip on overnight. You need labor, you need equipment, you need installation. I haven’t seen much sign yet of big ramp-ups, and frankly, with how fast things can change — sometimes by the end of the day — there’s a lot of hesitancy.”

Hieb agreed. “Of course, there’s opportunity in the domestic stone market — but the sheer cost and time involved are huge, and the landscape can change overnight,” he said. “As Evan pointed out, we have to recognize that we are all part of, and witnessing firsthand, a large, ongoing negotiation. People often ask me, especially in my role with trade associations, what our job is in this moment? I believe it’s about creating opportunities like this: where people can communicate, network and share best practices. Sure, you can have the best database on tariffs and regulations, but the real value comes from people exchanging strategies for how they’re adapting on the ground.”

Looking for a bright spot, one audience member asked, “While we often focus on the downside of tariffs, could there be hidden opportunities for the domestic supply chain?”

Hieb said his perspective is that every company needs to stay nimble. “Keep doing the basic work of presenting your products and finding opportunities,” he said. “Just like the companies exhibiting here today, tariffs can actually open sales doors. Maybe someone who never considered domestic stone before will now take a closer look.”

Jensen said, “In some cases, it’s just a numbers game. If imported goods become as expensive — or more expensive — than domestic products, you need to be ready to pivot. That said, there are also things that only come from overseas. For example, if a client specifically wants Italian marble, you can only get it from Italy. The question is, will that segment of buyers shrink as tariff impacts ripple through the broader economy? That’s something we need to watch closely.”

Price Increases and Communication

Another audience question was whether companies are already passing on price increases due to tariffs? The short answer is “yes” — some companies have already issued price increase notices dated May 1st or May 15th. “Even when you have existing product sitting in the warehouse, new incoming shipments are coming in at higher landed costs due to tariffs and businesses are adjusting prices accordingly,” said Cohen.

“The key here is communication,” Cohen went on to say. “If you’re working on a project or managing client expectations, you need to be clear and transparent. I spoke to someone today who wanted to place an order for 500 slabs. I asked them, “Why do you want to buy 500 slabs from me?’ They said because they wanted to lock in the pricing. I told them, honestly, I can’t — and anyone who says they will is likely putting the tariff costs into the price now. Communication is critical so that everyone understands where things stand.”

Hieb asked Stimic how it is on the consumable side? “Things move quickly,” he said. “We turn inventory about nine times a year, so every month, we’re receiving new shipments. Starting in April when these tariffs started, shipments have been arriving with new tariffs applied. We’ve had to balance absorbing some costs while passing some on, and we put a price increase in place as of May 1st.”

Clarifying Tariff Timing

An audience member was curious to know when does the 90-day window for tariffs actually start? Is it based on billing date or shipping date? “Ship from country of origin is when that gets tariffed,” said Stimic. “It’s 10% that started already in April, we got 25% on steel – so there have been tariffs already that have been active since the beginning of April.”

The panelists agreed that networking and learning from peers in the industry can provide valuable insights into how others are managing similar challenges. Attending industry events like trade shows can help businesses stay informed about best practices, emerging trends and strategies for navigating the current environment. Engaging with other industry professionals fosters collaboration and helps companies stay ahead of the curve.

Navigating price increases, supply chain disruptions and competitive pressures requires a strategic methodical approach. By maintaining strong supplier relationships, communicating transparently with customers and seizing opportunities during crises, businesses can weather these challenges and come out ahead. And with the right insights and industry connections, companies can make more informed decisions, strengthening their position in the market.