U.S. coal exports are staring down the barrel of a difficult 2023. Together, they account for roughly one-fifth of the nation’s total coal production. The most important thing by far, though, has been China’s decision to stop importing U.S. coal altogether which has cratered exports. Consequently, total coal exports decreased by 14% January through September of this year compared to the same period last year.
Major destinations for U.S. coal exports in recent years have included India, the Netherlands, Japan, Brazil and South Korea. Last year, almost three-fourths of the coal we exported to China was metallurgical coal, which is essential for steelmaking. The other half was made up of thermal coal — the type that powers our electricity generation. This change has sparked fears of American coal producers, especially those in Appalachia which mostly produce metallurgical coal.
As recently announced, China has halted imports of U.S. coal. This decision followed the country’s implementation of exorbitantly high, retaliatory tariffs, beginning with a 15% tariff in February and jumping to a reciprocal 34% tariff in April. These tariffs have dealt a death blow to U.S. coal’s competitiveness in the Chinese market. Before, China was shoveling hundreds of thousands of tons of coal a month through ports in Baltimore and the Gulf of Mexico.
Despite the downturn in coal exports, U.S. coal production has increased by about 6% this year due to rising natural gas prices rather than any specific policies enacted by the Trump administration. Much of this production comes from large-scale, open-pit mines. These mines are located in the Powder River Basin, which covers eastern Wyoming and southeastern Montana.
In fact, recent federal lease sales for coal extraction in Montana, Wyoming, and Utah drew no acceptable bids. The Interior Department deemed those offers insufficient. This trend is illustrative of the collapse the industry continues to face. It poses troubling questions about the direction of U.S. coal production and export strategies going forward.
In its quest to prop up the failing coal industry, this administration has reduced the royalty rates owed on coal mined on federal lands. They’ve committed $625 million to strengthen coal power generation. Overall, this funding will go toward recommissioning or modernizing aging coal plants throughout the country.
Charlotte Taylor, a spokesperson for energy policy, stated, “We need to keep our lights on, our economy strong, and America Energy Dominant.” This sense of determination mirrors real, current day efforts to ensure stable energy production and use amid challenges posed by international trade.
Though hopeful about possible increases to exports, experts say they are guarded. As the webinar concluded, Seth Feaster spoke with frustration and sadness as he expressed doubt that the future would be any different. He asked if it would just perpetuate the status quo or result in boosting coal and soybean exports to China. Andy Blumenfeld Clockwise from above, photos by John O’Leary, Georgianne Mager, Philacorn, Conor Meany There is hope,” observed Andy Blumenfeld.
