Trump’s China tariffs: Beijing could target US coal industry
Bullish market outlook despite trade war concerns?
Fox Business quoted Marc Scribner on the harmful market impact that a Chinese tarriff on U.S. coal exports would create given that the coal industry heavily relies on the demand for coal in asian markets.
One of President Donald Trump’s biggest campaign promises was to revive the U.S. coal industry. Throughout recent years, China has curtailed capacity in its coal sector as it seeks to move toward greener alternatives, like natural gas. Last year, Beijing canceled plans to build more than 100 coal plants, in addition to 30 in the year prior.
“Coal exports in the U.S. are surging in part because China has been shutting down its less efficient coal mines,” Marc Scribner, senior fellow at the Competitive Enterprise Institute, told FOX Business. “[Retaliating] against U.S. coal exports … may be a politically savvy move for the Chinese.”
If Beijing were to slap U.S. coal exports with a tariff, it would have a notably negative impact on the struggling U.S. industry, which sees a lot of demand in Asia, Scribner noted. China would also be able to strengthen its position in the sector, and would potentially turn instead to Canada and Australia for cheaper coal.