Wyoming energy may not feel direct effects of China’s tariffs, but uncertainty lingers

CASPER, Wyo. — While the Trump Administration’s announced tariffs on imports from China will likely be felt by every consumer at some point, it could take some time to know how Wyoming’s energy industries fare.

Trump’s administration said the president is using tariffs to force other countries to help curb the flow of fentanyl into the U.S. Threats of steep tariffs on Canada and Mexico were paused for 30 days after the countries came to proposed agreements.

In response to Trump’s 10% tariff on Chinese imports, China responded with a targeted list of tariffs that include 15% on coal and liquefied natural gas, or LNG, products and 10% on crude oil, agricultural machinery and large-engine cars imported from the U.S.

Wyoming’s coal and LNG industries import little if any resources directly to China, according to the Wyoming Mining Association and the Petroleum Association of Wyoming.

“Given the lack of an LNG export terminal on the west coast, the direct impact to Wyoming producers would be minimal,” said the Petroleum Association of Wyoming’s Ryan McConnaughey in an email to Oil City News.

Gov. Mark Gordon’s office said it was too early to speculate on any effects on the industry at this time.

Sen. John Barrasso said in an email statement to Oil City News that he supported Trump’s efforts.

“The president has every right to hold other countries accountable that do not treat us fairly or properly,” he said. “We need to make sure China and other countries are stopping fentanyl from entering our country.”

“In Wyoming, we’re closely watching how these tariffs might impact our energy economy, especially LNG exports,” he continued. “China’s tariffs on coal will largely not impact Wyoming given they rarely purchase our coal in the first place.”

According to the U.S. Energy Information Administration, America as a whole exports 6.46% of coal to China, with the vast majority of China’s coal imports coming from Indonesia. However, LNG has been putting pressure on coal markets for some time, and any sudden changes in the market could affect Wyoming’s coal demand down the road.

According to a Reuters report, some analysts are predicting a global oversupply of LNG by the end of the decade, along with an exponential growth of exporting infrastructure. Leading energy companies are expecting growing demand for LNG at the expense of coal, they said.