President Donald Trump’s efforts to boost the U.S. coal industry are hampered by falling exports to China due to his trade war. China’s halt on U.S. coal imports led to a 14% decline in U.S. coal exports this year. Trump’s recent meeting with China’s Xi Jinping may impact trade progress, but its effect on the coal industry remains uncertain.

Despite Trump’s deregulation and opening of federal lands for mining, U.S. coal production has risen by 6% this year, mainly due to higher natural gas prices. Recent coal lease sales in Montana, Wyoming, and Utah have failed to attract acceptable bids. Coal exports to China dropped 14% from January to September compared to last year.

China’s additional tariffs on U.S. coal have significantly impacted overall U.S. coal exports, with China halting all coal imports from the U.S. since April. Most U.S. coal exports go to India, the Netherlands, Japan, Brazil, and South Korea, with China accounting for a smaller share. Appalachia stands to benefit most from a potential resumption of U.S. coal exports to China.

Last year, most U.S. coal exported to China was metallurgical coal for steelmaking, while the rest was thermal coal for power generation. Metallurgical coal is primarily from Appalachia, while thermal coal comes from the Powder River Basin in Wyoming and Montana. Baltimore was a key exit point for coal bound for China, with limited thermal coal exports from the Western U.S. due to logistical challenges and political opposition.

Read more at Yahoo Finance: Trump efforts to help US coal undercut by export drop during trade war