Senators Propose Eliminating 15% MFN Tariff on Titanium Sponge

Five senators, from both parties, want to end the 15% tariff on titanium sponge for most favored nations, and introduced a bill to change the tariff line.

The Securing America's Titanium Manufacturing Act would end the tariff until the end of 2031. The legislation requires that the administration monitor whether the titanium supply chain starts to be supplied by China or other hostile countries, and gives the president the authority to reapply the tariff, if needed. Domestic titanium alloy and sheet and plate producers import 100% of the titanium sponge used in their products; almost 90% of the titanium sponge is imported from Japan.

Sen. Catherine Cortez Masto, D-Nev., led the bill, which is supported by TIMET, a Nevada firm that once tried to erect trade barriers to titanium sponge through an antidumping and countervailing duty case, and then, when that failed, through a Section 232 investigation. However, after the Trump administration declined to impose tariffs or quotas on imported titanium sponge, TIMET stopped producing titanium sponge in Nevada, and now just produces alloy, sheet and plate products.

A working group that was convened as the result of the Section 232 investigation said that the U.S. should eliminate the 15% tariff (see 2308030009); congressional action is required to do so.

The bill, introduced March 21, also is supported by unions and other U.S. titanium companies.

Both of West Virginia's senators are co-sponsors, as are Sens. Marsha Blackburn, R-Tenn., and Thom Tillis, R-N.C.

"West Virginia hosts operations that create titanium products to strengthen national security through domestic supply chains and boost our aerospace industry. This legislation would help ease costs on this vital industry, increase access to materials, and encourage economic development while maintaining U.S. authority to adjust tariffs as needed,” Sen. Shelley Moore Capito, R-W.Va., said in the press release announcing the bill's introduction.