WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Sherrod Brown (D-OH) today urged the Biden administration to increase duties on Russian ferrosilicon that contains 75 percent silicon to a 35 percent tax per unit in a letter to U.S. Customs and Border Protection (CBP) Acting Commissioner Troy Miller and U.S. Trade Representative Katherine Tai. This effort will help bolster domestic production of ferrosilicon and replace Russian imports that finance the country’s illegal invasion of Ukraine.
“Globe Specialty Metals, Inc. (“Globe”) and CC Metals and Alloys, LLC (“CCMA”) are two American producers of ferrosilicon. Since October 2021, CCMA has invested more than $10 million towards the expansion of its American production operations, creating new jobs in the process. According to industry projected production capacity, CCMA and Globe believe they could immediately replace nearly all Russian imports without supply interruptions,” wrote the senators.
Cassidy and Brown were leading voices in the Senate calling for the U.S. to revoke Permanent Normal Trade Relations with Russia, introducing the bipartisan and bicameral No Most Favored Nation Trading with Russia Act to revoke Russia’s most-favored-nation status, which currently shields Russia from being subject to higher U.S. tariffs. President Biden also announced his support to withdraw Russia’s special trade status.
Read the full letter here or below.
Dear Acting Commissioner Miller and Ambassador Tai:
As the Senate leads on efforts to remove Permanent Normal Trade Relations from Russia, we applaud the Administration for the steps it has taken to use all available economic tools to address Russia’s decision to unlawfully invade Ukraine. However, more must be done. Accordingly, we are requesting that the Administration increase the Column 2 duty on Russian ferrosilicon containing 75 percent silicon to 35 percent ad valorem. This effort will help replace Russian imports that finance their illegal invasion.
The President’s “Increasing Duties on Certain Articles from the Russian Federation” Proclamation 10420, issued on June 27, 2022, increased duties on four of five categories of ferrosilicon, an alloy of silicon and iron important for steel production. The fifth category of Russian ferrosilicon containing 75 percent silicon (“Si 75% ferrosilicon”) accounts for most Russian ferrosilicon imports into the United States.
Globe Specialty Metals, Inc. (“Globe”) and CC Metals and Alloys, LLC (“CCMA”) are two American producers of ferrosilicon. Since October 2021, CCMA has invested more than $10 million towards the expansion of its American production operations, creating new jobs in the process. According to industry projected production capacity, CCMA and Globe believe they could immediately replace nearly all Russian imports without supply interruptions. In addition to the ferrosilicon produced domestically, the U.S. market also receives Si 75% ferrosilicon imports from countries other than Russia, including Brazil, Malaysia, Kazakhstan, Canada, Norway, and Iceland.
We urge you to increase the Column 2 duty on Si 75 percent ferrosilicon from Russia, HTSUS 7202.21.50, to the same level as the other four categories of Russian ferrosilicon from. Doing so will increase U.S. domestic production of ferrosilicon and will also limit a source of revenue that fuels Russia’s ongoing atrocities in Ukraine.
Thank you for your consideration of this request; we look forward to working with you to strengthen the U.S. economy and continue to take a strong stand against Russian aggression.