The Tile Shop Braces for Impact of Tariffs

If you’re doing a home remodel project, chances are, you’ll need new tile.

Choosing the right style of tile requires some thought.

“This is a permanent decision. It’s not paint. It’s not carpet. This is gonna go in, and it’s gonna stay,” said Cab Lolmaugh, CEO of The Tile Shop. “So I want something that’s gonna look good.”

The Tile Shop, which is headquartered in Plymouth, has 142 stores spread across 31 states.

At the moment, Lolmaugh says home remodels are driving sales.

“We’re into the phase of higher interest rates, higher mortgage rates, so the construction industry has gone down a little bit,” he said. “But our customer’s more, they focus a lot on remodeling, which helps us continue to be profitable and grow the business.”

It’s a business that requires him to import products from around the world, because that’s where the raw materials are, and U.S. producers can’t meet the demand.

“You need clay, you need feldspar, you need mica, these are all mixed together and basically baked like a cookie,” said Lolmaugh.

Cab Lolmaugh, CEO of The Tile Shop, shows off a display in the Plymouth showroom.

All told, The Tile Shop sources materials from 30 countries — although they’ve grown their U.S. purchases considerably over the last two years.

With new tariffs imposed this week by the Trump administration, Lolmaugh says there will be an impact.

“Tariffs were imposed on every import from every country, so what you have to do is look at your current inventory levels because those were purchased a while ago at a different price,” he said. “How long can you sustain your pricing to fit your margin model or support your business?”

It’s something The Tile Shop will have to monitor. However, Lolmaugh doesn’t expect across the board price increases.

“That doesn’t work for the consumer, it doesn’t work for us,” he said. “If I can move a price up or down in certain areas, sure I’m gonna do that to fit the model of the business.”

Whatever happens in this global marketplace, one constant is that The Tile Shop is helping people achieve their home remodeling dreams.

“Yeah, it’s fun, it’s exciting,” Lolmaugh said.

Related: Local Manufacturers Expect Prices To Rise with Tariffs

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