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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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