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Trade tensions with China puts West Virginia coal producers on edge
Trade tensions with China puts West Virginia coal producers on edge
Trade tensions with China puts West Virginia coal producers on edge

Published on: 02/05/2025

Description

CHARLESTON, W.Va. (WCHS) — West Virginia exports more coal to China than any other state and some producers have expressed serious concerns over a potential trade war.

Countermeasures to President Donald Trump's 10% tariff have some West Virginia coal producers on edge as China fired back with a 15% tariff on coal imports.

The Mountain State exports about 6 million tons of coal to China each year, making up roughly half of all U.S. coal exports to China.

"They could have a dramatic impact. They could evolve to the point where even furloughs of mining operations are considered, " West Virginia Coal Association president Chris Hamilton said.

Coal producers are closely monitoring the situation and are hopeful it will be a short-lived element of trade negotiations between China and America.

The economic grievances for the two countries are complex. Now coal - especially Met coal - is caught in the middle.

Preliminary production estimates for 2024 show coal mined in West Virginia dropped about 2% from the prior year. Exports are seen as critical to coal, even under a Trump administration thought to be friendlier to fossil fuels.

Trade wars have their ups and downs. A Chinese dispute with Australia gave West Virginia a chance to get into the China market in a big way.

"There is real fierce competition from Australia, Indonesia, Columbia and South Africa,” Hamilton said. “There are a lot of available suppliers out there now."

The tariff change pumps up China's total levy on U.S. coal to 18%.

Issues with the industry could show up in the state budget, which partially relies on severance taxes.

A diplomatic solution may still be possible, but whatever the outcome for U.S. coal, West Virginia will feel it the most.

News Source : https://wfxl.com/news/nation-world/trade-tensions-with-china-puts-west-virginia-coal-producers-on-edge

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