Letter to Jamieson Greer concerning “trade action” being contemplated by the Office of the United States Trade Representative (USTR)

March 19, 2025 

Mr. Jamieson Greer
United States Trade Representative
600 17th Street NW
Washington, DC 20508
Submitted electronically via the USTR Comments Portal:

Dear Ambassador Greer:

I am writing to you concerning a “trade action” being contemplated by the Office of the United States Trade Representative (USTR) concerning Chinese-constructed maritime (deepwater) vessels. In response to a petition filed in 2024, the USTR published a notice in the Federal Register proposing to impose a “service fee” on operators of vessels that were constructed in China up to $1 million per entrance to a U.S. port.1 If the service fee is finalized, it will have an immediate and adverse impact on coal production and employment throughout multiple coal producing regions and states.

Due to the historic assault on the United States coal industry and hostility from previous administrations towards coal-fired electric-generating units, the industry has gradually but necessarily shifted to the export market. This shift has helped sustain the industry and the coal economy in many of our coal states.

Approximately 102.9 tons of high-quality thermal and metallurgical coal produced in the United States was exported in via American ports in 2024, representing nearly 20% of our nation’s overall coal output of 509.5 million tons. Global shipments of metallurgical coal, a critical component in the steelmaking process, accounted for 51% of that export volume last year with the remaining 49% being high-quality thermal coal for electricity generation and industrial uses.

Export volumes from the United States have gradually increased as countries around the world seek higher quality coals and fuel to grow their industrial base and replace fuels from adverse regimes, especially during times of conflict. Virtually all that export volume moves to its final destination by deepwater maritime vessel.

Given the widely acknowledged atrophy in shipbuilding capacity around the world, and in the United States, it is likely impossible for coal exporting companies to secure an adequate number of appropriately designed and sized vessels to avoid the proposed port fees. With no alternative vessel capacity available, imposition of the proposed port fees will most certainly price American coal out of the seaborne market. In addition to the significant and adverse consequences on American coal producers and tens of thousands of jobs that support the industry, limiting coal exports from the United States will also adversely impact our allies and global energy trading partners, as they are increasingly relying on coal from the United States to avoid energy-driven political entanglements with hostile nations. 

Considerable planning, employment and operation considerations are necessary for efficient mine production, and in the case of metallurgical coal, air exposure impacts coking coal’s fluidity due to oxidation. Thermal coal will suffer similar quality degradation from delayed delivery. As a result, the timing of shipments is of utmost importance. With that in mind, the mere threat from the publication of the proposed service fee in the Federal Register has already disrupted mine operations, shipping contracts, caused confusion, and has delayed coal shipment negotiations.

While the short-term effects of the proposed service fee are already being felt, we understand the motivation to balance trade agreements with our competitor countries. Nevertheless, roughly one-fifth of the nation’s 400,000 direct and indirect mining jobs are tied directly to the mining, processing and transportation of coal destined for export, and we encourage thorough review of this action and consideration of unintended consequences that could harm our mining companies.

Respectfully submitted on behalf of the listed state coal association and coal advocacy groups.

Chris R. Hamilton
President & CEO
West Virginia Coal Association

The following State Coal Associations and Groups have signed on to the above response:

American Coal Council
Kentucky Coal Association
Illinois Coal Association
Pennsylvania Coal Alliance
Reliable Energy, Inc
Rocky Mountain Mining Institute
Tennessee Mining Association
Texas Mining & Reclamation Association
West Virginia Coal Association
Women’s Mining Coalition
Wyoming Mining Association

¹ See Generally 90 Fed. Reg. 10843-10846 (February 27, 2025)