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This US cargo ship is racing to China to beat a new tariff on the soybeans

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

Bloomberg  |  Beijing 

US China

A ship carrying US soybeans is steaming toward northern China in a race to beat a 25 per cent tariff. Peak Pegasus is expected to arrive in on Friday, the same day that China is scheduled to impose on imports from the US, according to shipping data compiled by Bloomberg and a person familiar with the matter.

If it arrives as scheduled, it should be able to clear customs before the are imposed, according to the source. Ship-tracking data currently shows it arriving at about 5 pm local time (2.30 pm IST).

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China plans to impose on $34 billion of American imports, including soybeans, from July 6 in retaliation against a raft of duties set to be imposed by the US 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 US is 12 hours ahead of Washington.

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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. The Asian country is expected to cancel or re-sell US soybeans due to the additional duties and purchased 19 cargoes from last week. China typically imports from at this time of year before switching to the U.S., spurring concerns about a deficit in the fourth quarter.

Soybeans on the tumbled 14 per cent last month due to the escalating trade tensions. The oilseed, the most exposed of all assets to a trade war, is now a buy, according to

First Published: Fri, July 06 2018. 00:00 IST
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