Mike Kelly

07/03/2024 | Press release | Distributed by Public on 07/03/2024 11:35

Kelly, Wenstrup Introduce Bipartisan Legislation to Secure Critical Titanium

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July 3, 2024

WASHINGTON, D.C. -- This week, U.S. Rep. Mike Kelly (R-PA) joined U.S. Reps. Brad Wenstrup, D.P.M. (R-OH), and Rep. Dan Kildee (D-MI), along with Reps. Carol Miller (R-WV), Dina Titus (D-NV), Mike Kelly (R-PA) and Haley Stevens (D-MI) to introduce the Securing America's Titanium Manufacturing Act, a bill to temporarily waive the 15% tariff on imported titanium sponge to ensure U.S. titanium manufacturers and workers can compete with Russian and Chinese state-owned enterprises in the global titanium marketplace.

"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."

"The current 15% tariff on imported of titanium sponge puts an unnecessary burden on American producers, especially the producers of critical products needed for our national defense," said Rep. Wenstrup, D.P.M. "By providing a temporary waiver of these tariffs, we can ensure American producers can compete on the international stage while securing the supply chain for critical supplies needed for our defense industry."

"American workers and manufacturers rely on titanium sponge to build components for engines, planes, and satellites-technologies that are critical to our national security," said Rep. Kildee. "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."

"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," said Rep. Miller.

"We're in a race for the future and titanium products are central to that future," said Rep. Stevens. "This commonsense legislation will make it easier for our manufacturers to secure titanium sponge, a critical component in titanium products, including aircraft and satellites. That's why I'm a proud co-sponsor of the Securing America's Titanium Manufacturing Act, to make sure that every American worker and manufacturer can remain at the cutting edge."

"Titanium is critical to the U.S. aerospace and defense industry. From jet engines to landing gear, it's used in every major platform. Rep. Wenstrup and Rep. Kildee's new bill Securing America's Titanium Manufacturing Act will ensure reliable access to this vital mineral. The Aerospace Industries Association thanks them, along with Sen. Cortez Masto, for their leadership," said Eric Fanning, President and CEO of the Aerospace Industries Association

"TIMET wants to express its sincere gratitude for Congressman Brad Wenstrup's critical work and leadership in introducing The Securing America's Titanium Manufacturing Act in the U.S. House of Representatives. In addition to benefiting the U.S. industry, this bill will also have a direct, positive effect on TIMET's hardworking employees in Toronto, OH. This initiative will enhance American competitiveness in the global titanium market and strengthen our national security supply chain," said Corey Checkan, GM of TIMET Toronto

BACKGROUND

Titanium sponge is a critical raw material used in aircraft frames, jet engines, helicopters, and missiles, among other products. There is currently no domestic production of titanium sponge, leaving American manufacturers no choice but to import from abroad and pay the 15% tariff. The current tariffs place American titanium producers at a cost disadvantage, harming their ability to compete with foreign producers in Russia and China who rely on local supplies of titanium sponge. Our ally and trusted trading partner, Japan, provided over three quarters of U.S. titanium sponge imports in 2023, according to the U.S. Geological Survey. Importantly, the bill provides the authority for the President to increase the duty back to its original 15% rate if there is sufficient domestic production to meet U.S. national security needs, or if imports from countries of concern begin to rise.

Read the full legislation here.