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Tariff relief sought for metal industry

By Robert Swift 2 min read

A House Republican lawmaker warns that a federal tariff is hurting a metal industry that Pennsylvania wants to grow.

Rep. Mike Armanini, R-Elk, is seeking congressional action to lift the tariff impacting the powder metal industry.

Powder metal or metallurgy turns metals like steel and copper into powder. The powder is then heated and pressed through a process called sintering into solid shapes. The components are used in car parts and other equipment.

Powder metals firms are concentrated in Pennsylvania's large rural Northcentral Region.

Expanding the powder metal industry is part of Pennsylvania's long-range economic development strategy. Harrisburg has provided millions of dollars of state aid for business expansion and job training in this area in recent years.

The powder metals industry is suffering due to a 50% tariff imposed by the Trump administration on imported copper products, Armanini said.

The tariff is in place while the sole manufacturer of domestic copper powders, Kymera International, delayed production after a June 29 fire.

Companies are buying copper products overseas due to the lack of domestic product, said Armanini.

"I support at least temporarily removing the tariff rate to help stabilize this industry which reaches into so many other aspects of manufacturing," he said. "The average person doesn't realize how many powder metals support everything from garden tools and household appliances to complex airplane and national defense needs"

Armanini and more than a dozen Pennsylvania companies asked the U.S. Commerce Department to lift the tariff temporarily. Armanini also raised the issue with Pennsylvania congressional representatives.

The powder metals industry is buffeted by tariff volatility, trade disruptions, technological changes and global conflict, said the Metal Powder Industries Federation.

Tariff shocks have made long-term planning difficult, the federation said.

PA economic strategy

Gov. Josh Shapiro's 10-year economic development strategy targets powder metals as part of a wider manufacturing focus. Its importance to the rural economy is a factor.

The administration provided nearly $1 million to support the expansion of Nichols Portland into a new facility at St. Marys and provided financing for Advanced Powder Metals in Phillipsburg.

The state Department of Community and Economic Development manages the powdered metals program providing specialized training, equipment updates and academic courses at the Penn State branch campus in Dubois and local high schools.

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