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Friday, September 20, 2024

Bipartisan bill seeks waiver of tariffs on imported titanium sponge

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Rep. Mike Kelly, U.S. Representative for Pennsylvania's 16th District | Official U.S. House headshot

Rep. Mike Kelly, U.S. Representative for Pennsylvania's 16th District | Official U.S. House headshot

U.S. Rep. Mike Kelly (R-PA) has joined U.S. Reps. Brad Wenstrup, D.P.M. (R-OH), Dan Kildee (D-MI), Carol Miller (R-WV), Dina Titus (D-NV), and Haley Stevens (D-MI) in introducing the Securing America’s Titanium Manufacturing Act. This bipartisan bill aims to temporarily waive the 15% tariff on imported titanium sponge, enabling U.S. titanium manufacturers and workers to compete more effectively with Russian and Chinese state-owned enterprises in the global market.

“This critical legislation would level the playing field for American titanium manufacturers to compete on the global stage,” said Rep. Kelly. “Titanium sponge is an essential component of military and commercial aircraft, naval vessels, satellites, and more. By removing the 15% tariff on titanium sponge, we can strengthen American companies, boost our defense industrial base, and reduce costs for both companies and producers.”

Rep. Wenstrup emphasized the burden that current tariffs place on American producers: “The current 15% tariff on imported titanium sponge puts an unnecessary burden on American producers, especially those of critical products needed for our national defense. By providing a temporary waiver of these tariffs, we can ensure American producers can compete internationally while securing the supply chain for critical supplies needed for our defense industry.”

Rep. Kildee highlighted the importance of titanium sponge for national security: "American workers and manufacturers rely on titanium sponge to build components for engines, planes, and satellites—technologies that are critical to our national security. I'm pleased to introduce new legislation to safeguard our supply chain for titanium sponge, support good-paying jobs, and level the playing field for American workers in Michigan and across the country."

Rep. Miller stressed the need to bolster domestic production: “The United States should not be buying titanium from our adversaries that we can produce ourselves. Now more than ever, we should be bolstering American manufacturers and critical mineral producers to protect U.S. national security. The Securing America’s Titanium Manufacturing Act of 2024 will ensure that the United States is using our resources to improve our titanium supply, strengthen our national security, and grow our economy.”

Rep. Stevens pointed out the future significance of titanium products: “We’re in a race for the future and titanium products are central to that future,” she said. “This commonsense legislation will make it easier for our manufacturers to secure titanium sponge—a critical component in titanium products including aircraft and satellites.”

Eric Fanning, President and CEO of the Aerospace Industries Association, expressed support: "Titanium is critical to the U.S. aerospace and defense industry... Rep. Wenstrup and Rep. Kildee's new bill Securing America’s Titanium Manufacturing Act will ensure reliable access to this vital mineral."

Corey Checkan, GM of TIMET Toronto also endorsed the bill: “TIMET wants to express its sincere gratitude for Congressman Brad Wenstrup's critical work... This initiative will enhance American competitiveness in the global titanium market.”

Titanium sponge is crucial for various applications such as aircraft frames, jet engines, helicopters, and missiles but lacks domestic production capacity in the U.S., forcing reliance on imports subject to a 15% tariff. According to the U.S Geological Survey data from 2023, Japan supplied over three-quarters of U.S imports.

The bill includes provisions allowing presidential authority to reinstate tariffs if domestic production meets national security needs or if imports from concerning countries increase.

Read the full legislation here.

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