On 7 August, the US Department of Commerce announced the initiation of anti-dumping (AD) and countervailing (CV) duty investigations into specific tungsten shot imports from China. 

This action was prompted by concerns raised by Tungsten Parts Wyoming (TPW) regarding the significant influx of inexpensive tungsten products imported from China. TPW filed a petition for the imposition of the AD and CV duties on 10 July. The company alleges that Chinese producers and exporters are selling merchandise at less than fair value while being subsidised by the Chinese government.

China holds the top global ranking for tungsten reserves, production output, and exports. This makes the country a significant source of tungsten supply for consumers outside China. Tungsten markets often have to turn to China to meet their tungsten requirements. It is estimated that China exported more than 5.9kt of tungsten shot (equating to approximately one-third of the North American market, according to Project Blue), with an estimated value of US$10.9M, to the USA in 2023.

The USA has taken protective measures against China by enacting the REEShore Act of 2022. The Act prohibits the usage of tungsten sourced from China in any US military equipment by 2026 and states that the USA should be able to build out its tungsten stockpiles by 2025. Further protective measures were taken in 2024 when the Biden Administration raised tariffs on tungsten concentrate, tungsten oxide, and tungstate imports by 25%.

On 23 August, the US International Trade Commission (ITC) determined that there is a reasonable indication that relatively cheap tungsten shot from China has negatively impacted the domestic tungsten market. As a result of the USITC’s affirmative determinations, the US Department of Commerce will proceed with its investigations into imports of specific tungsten shot from China. The preliminary AD duty determination is due on or about 24 December, and the preliminary CV duty determination is due on 10 October.