Trump's tariffs are a threat and an opportunity for coal producers

Alexander Titov, Senior expert at the Institute for Energy and Finance, commented to the Neft and Capital Internet portal on the impact of US import duties on the global coal market.

Alexander Titov said that the prospects for the growth of coal consumption in practice may be questionable. The reason may be the same duties from the United States. Under the new tariffs, Asian producers may start saving on energy, choosing coal more often, but at the same time they are also able to reduce this very production.

"Apart from Japan and South Korea, coal plays an important role in the energy mix of many Asian countries, which is complemented by hydropower and renewable energy generation. There is not much gas in the balance, which can be exchanged for coal, therefore, sharply boost demand for it.

In the first quarter of 2025, we see how some coal exporting countries - Australia, Colombia, and partly Indonesia - even reduced (or announced that they would do so soon) supplies of solid fuels. Global prices for such raw materials have fallen to the covid-19 levels of early 2021. Today, not only Russia has difficulties exporting coal, but also Australia, South Africa, Indonesia, Colombia, and the United States," says the expert.