The first of three US soybean deliveries in China has arrived. It also makes it the first to be slapped with heavier taxes, a direct result of the tariffs the Trump administration imposed on Chinese exports. China responded by imposing tariffs on incoming US goods.
The cargo marks the very first of US imports to receive a heavy taxing from the Chinese-imposed duty taxes. This was in retaliation to the Trump administration's own trade tariffs. The vessel, which left US ports five weeks before the first tariffs hit, docked in Chinese ports, making clear the fate of the cargo that was in question after a long series of back and forths between Beijing and Washington.
The public had mixed reactions to the arrival of the cargo, per Channel News Asia. On state-run Weibo, the Chinese reaction was mostly negative. One commentator said that the state-owned Sinograin could've done better, as the people would ultimately be paying for the extra taxes. Another echoed the first commenter's ideas, saying that it appeared as if they are imposing the sanctions on themselves.
The arrival of the cargo in the Chinese port suggests that they plan to move it from the port and into the market. Aside from the cargo, two more shipments from the US have arrived-one from the 'Star Jennifer,' and another, from the 'Cemtex Pioneer,' which had been anchored off the coast of mainland China.
Contrary to the latest shipments, however, Reuters reports that at least one of them is on the move. The Star Jennifer, arriving off the Dalian port since July 24, was reported moving. It was not shown where the ship was headed to or if the cargoes were to be dropped.
Soybeans are an important resource in China. Manufacturers use soybeans to create cooking oil as well as mix in animal feed. It is one of the US' top imports to China, reaching a total worth of $12.7 billion worth of cargo delivered in 2017.
China isn't worried at all, despite the current trade dispute. There are other sources, like Brazil, which can ably fill in for the US deficit. As long as the US-China trade war is ongoing, both sides will have to make adjustments to avoid literally costly mistakes.
