The trade spat between the US and China has forced exporters from both countries to seek other ways to avoid the tariffs. While some figured that they should shift countries for a while, others have come up with a solution-deliver their exports ahead of the imposition of the US tariff on Chinese exports.
Chinese companies have rushed to complete their exports ahead of the US-imposed tariffs. Ever since last month, exports coming into the United States from China have surged from 13 percent from July 2017 to $41.5 billion just a year later, but similar in percentage.
NWA Online reports that these shipments are beginning to dwindle as the US, through the Trump administration, continues to spew forth threats of more tariffs as President Donald Trump grows increasingly protective of US interests. A surge of Chinese trade surplus is the result, amounting to $28 billion in goods not delivered.
Beijing has warned that there will be 'instability' event after Trump imposed a 25 percent tariff on $34 billion of Chinese goods. The Trump administration's response to that was to impose another set of tariffs on $16 billion more imports. China, in response, slapped tariffs on US goods-higher in amount than that of the US' own.
China has also looked for other trade partners to shore up their exports in the meantime. Reuters reveals that China may have found such in Brazil.
China has scrapped deals with US suppliers and shifted to Brazil. Tariffs imposed on these cargos have made US soybeans less attractive to buyers. The US Department of Agriculture, pressed for more information on the cancellation, did not elaborate further which buyers canceled their orders.
It is big news. China-with its sheer number of the population has emerged as the biggest importer of US soybeans. The shipments which were dropped before they could even be loaded were expected to head towards China, even as discussion remained ongoing between US and Chinese officials.
The tension doesn't sound good for the Trump administration as well. Despite Trump's own efforts to convince everyone that the tariffs were in the nation's best interests, in the long run, suppliers are becoming more and more disgruntled. The complaints have largely been loud that the dispute has done more harm than good, and people are pushing for a truce before it's too late for one.
