A ship carrying U.S. soyabeans is racing towards northern China in a race to beat a 25 percent tariff.
What happened?
The vessel ‘Peak Pegasus’ is expected to arrive in Dalian on July 6, the same day when China has scheduled to impose tariffs on imports from the United States. If the vessel arrives on time, it should be able to clear customs before the tariffs are imposed.
Increase in tariff for American imports
China has planned to impose tariffs on $34 billion of American imports — including soybeans — from July 6 in retaliation against a raft of duties set to be imposed by the U.S. on the same day. Neither country specified a time when they announced the tariffs and China has said it won’t impose the taxes before the U.S. Beijing is 12 hours ahead of Washington.
Soybeans in limelight
The soybeans have been a key battleground in escalating trade tensions between the two countries as China is the world’s biggest importer and America’s largest customer in trade worth $14 billion last year. China is expected to cancel or re-sell U.S. soybeans due to the additional duties and purchased 19 cargoes from Brazil last week. China typically imports from Brazil at this time of year before switching to the U.S., spurring concerns about a deficit in the fourth quarter.
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Source: Time
