Coal news and updates

China Snubs Australian Coal, Giving U.S. Coal Producers Breathing Space

Donald Trump tried to fire up the coal sector. But fierce market winds blew out any flames. Ironically, Trump’s departure has benefited U.S. coal producers — now that China has dumped Australian coal and it is getting U.S. supplies.

It is a nod to President Biden: China needs reliable trading partners that can feed its growth and that want to expand along with it. To that end, China drastically cut the tariffs that it had placed on American coal exports. That has helped it replace Australian supplies while it tries to normalize U.S. trade relations. 

“China wants to eliminate or greatly reduce that coal tariff not only because of its fight with Australia but more importantly, to make an overture to the United States: China is ready and willing to sit down to discuss trade issues and economic ties,” says Eric Fang, president of the National Center for Sustainable Development, in an interview. “The reasons are political and economic: China is sending a message to Australia about its unacceptable behavior while it is also lessening tensions with the United States.”