Trump Decides Not to Tax or Impose Quotas on Titanium Sponge Imports

President Donald Trump said that although it is a fact that there's only one titanium sponge producer in the U.S., and that's a threat to national security, he agrees with the Commerce secretary that measures aside from restricting imports are the best way to deal with the problem. Trump made the announcement Feb. 27. Imports accounted for 68% of U.S. consumption in 2018, the year that TIMET asked for a Section 232 investigation; nearly all come from Japanese suppliers.

Trump directed the Pentagon and Commerce Department to form a working group and invite Japanese agencies to participate in the discussions “in order to agree upon measures to ensure access to titanium sponge in the United States for use for national defense and critical industries in an emergency.” He said federal spending to support domestic production may be necessary, and if it is, he authorizes the Commerce Department to ask Congress for those funds.

TIMET had originally asked the government to get Japanese companies to agree to a reference pricing scheme, and to restrict imports from other countries either through quotas or through tariffs not subject to drawback (see 1904100032).