You have to love Clive Palmer. He's always good for making interesting headlines.
This time he's weighed in on the stoush between China and coal exporting nations like Australia and Canada.
You'd expect that given he has a vested interest in the topic as his private company Waratah Coal is looking to build a new coal mine in the Galilee Basin in Queensland.
Palmer, who is also a federal Member of Parliament and founder of the Palmer United Party, is urging the Australian government to take a firmer stand against China and tax iron ore exports to our most important trading partner, reports the Australian Financial Review.
Palmer is throwing his weight around and such a move will show the Chinese who is boss. But I can't imagine taxing Australian iron ore to China to be in the national interest given that it will just make our commodity less competitive at a time when the outlook for the steel making ingredient is so fragile.
I doubt our iron ore miners like Rio Tinto Limited (ASX: RIO) or even outspoken Fortescue Metals Group Limited (ASX: FMG) would back such a move.
Imposing a tariff will also weaken Australia's hand as it seeks to seek redress to China's decision to test all coal imports for fluorine, phosphorus, mercury, arsenic and other trace elements.
While it is common practice to test coal for ash and sulphur, the unusually strict testing regime has already seen at least one Australian shipment of coal being rejected.
China's new testing program is probably implemented to protect Chinese coal miners as there are reports that the test is not done on local coal.
Coal exporting countries are threatening to lodge a complaint to the World Trade Organisation (WTO) and imposing a tit-for-tat tariff will weaken Australia's hand, although the Australian government is trying to work quietly behind the scenes with Beijing to address this issue.
The trade friction is proving to be just another headache for our listed coal miners like WHITEHAVEN COAL LIMITED (ASX: WHC), who are already under intense pressure from the slumping coal price. What's more, creditors are getting nervous about Whitehaven's recent $1.4 billion debt refinancing with at least one lender in the group trying to sell the loan.
I am sure we have not heard the last from Palmer but he isn't helping as history has shown that kicking down doors and chest beating often makes a bad situation worse when it comes to dealing with Australia's Asian neighbours.
