To cut millions of dollars in costs for U.S. companies that produce critical defense materials, U.S. Sen. Shelley Moore Capito (R-WV) introduced a bipartisan bill that would remove the 15 percent tariff on imports of titanium sponge, a product made into materials that become components of military fighter aircraft, submarines, satellites, and other defense technologies.
“West Virginia is known for its manufacturing capabilities and has a proud tradition of involvement within the titanium industry. West Virginia hosts operations that create titanium products to strengthen national security through domestic supply chains and boost our aerospace industry,” Sen. Capito said. “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. Capito on March 21 signed on as an original cosponsor of the Securing America’s Titanium Manufacturing Act, S. 4015, which is sponsored by U.S. Sen. Catherine Cortez Masto (D-NV). U.S. Sens. Thom Tillis (R-NC) and Marsha Blackburn (R-TN) are also original cosponsors of the bill.
Currently, the U.S. titanium industry imports 100 percent of its titanium sponge, with almost 90 percent coming from Japan, a key national security partner.
However, the 15 percent tariff on titanium sponge is putting U.S. producers at a disadvantage relative to foreign titanium producers in hostile nations, including China and Russia, which do not pay this tax, according to a bill summary provided by the senators.
If enacted, S. 4015 would remove the existing tariff on titanium sponge imports from nations with preferential trade status until the end of 2031, and would require the President of the United States to monitor any efforts by China or other hostile countries to move into the U.S. titanium supply chain, the summary says.
S. 4015 also would give authority to the president to reapply the tariff if it becomes necessary to support U.S. businesses, workers, or national security in the future, states the summary.
The legislation is supported by Titanium Metals Corporation Inc., the United Steelworkers, the Aerospace Industry Association, and a host of other American titanium companies.