U.S. coal, critical minerals and liquefied natural gas this week again emerged as a bull’s-eye in an escalating trade war between President Donald Trump and China.

While Trump in recent days backed off imposing tariffs on goods from Canada and Mexico, the president continues to push duties on Chinese goods, a move that’s already rattling the metals markets. China’s Ministry of Finance in a statementTuesday said Trump’s move to impose 10 percent tariffs on Chinese goods “violates the rules of the World Trade Organization.”

The ministry also said that, in response, it would impose a 15 percent tariff on U.S. coal — from anthracite to coking coal — and LNG, and a lower 10 percent tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks. The measures take effect Feb. 10.

The ministry also unveiled new export controls effective immediately on metal products, including tungsten, which is used in industrial and defense applications, and tellurium, a material used to make solar cells. Also restricted are materials tied to molybdenum, indium and bismuth, which is used in ammunition and alloys for defense.

The tariff spat arrives as the U.S. continues to see exports of thermal coal boom around the world, including China. The U.S. Energy Information Administration in a post Tuesday said gross U.S. coal exports amounted to 10 million short tons in June — the most in a month since October 2018.

Demand in Asia and Africa is boosting demand for U.S. coal abroad. According to EIA, exports of thermal coal to Asia and Africa surged last year, with India accounting for 57 percent of those exports and Chinese power companies accounting for most of the rest of the increase.

Rich Nolan, president and CEO of the National Mining Association, said China’s move to expand restrictions on key minerals shows the nation’s reliance and repeated calls for more domestic production.

While China’s decision to slap tariffs on U.S. coal is significant, Nolan said global demand for coal has hit a new high and he expects that to continue.

“U.S. coal exports go to more than 70 nations and are a critical, stabilizing force in global markets,” said Nolan. “While China tries to damage a core U.S. industry, we expect global demand for high-quality U.S. coal to remain robust.”

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