On 2 April 2025, the U.S. government announced the imposition of “reciprocal tariffs” on Chinese goods entering the U.S. As part of this decision, China’s titanium exports were granted equivalent tariff exemptions, a move aimed at easing trade tensions. The White House published the exemption list on 3 April, which included nearly a thousand products, such as energy products, various minerals, chemicals used in energy and manufacturing, and metals like steel, aluminium, copper, titanium, scrap titanium, and ferrotitanium.
However, the exemption has certain limitations. While titanium was included in the list, it did not cover all titanium-related products, such as hafnium, molybdenum, vanadium, scrap nickel, and scrap aluminium. The exemption applies only to reciprocal tariffs, and does not remove previously imposed tariffs, including the 20% additional tariff on Chinese titanium products that has been in place since 4 March or the 25% tariff imposed in 2019. As a result, the tax rate for Chinese titanium sponge exported to the U.S. remains unchanged at 60%, despite the new tariff actions.
Additionally, unforged titanium from countries like Japan, Kazakhstan, and Saudi Arabia will still face a 15% tariff, while titanium scrap imported from the European Union (EU) and Britain will benefit from exemptions, avoiding the 20% and 10% tariffs, respectively. This tariff exemption is significant as the EU and Britain account for over half of the U.S. imports of titanium scrap.
Concerns have risen among U.S. scrap dealers, processors, and consumers, as there is a shortage of vacuum-grade titanium scrap produced domestically, which is necessary for ingot factories. The limited import volume from China, which was 1,300 tonnes in 2024, with 40% of it classified as bars, rods, and profiles, and 20% as wire, is insufficient to meet domestic demand. Furthermore, the U.S.’s potential move to impose tariffs on the EU could worsen the situation.
