Commodities

Soybean Cargo Docks After Month Delay Due To US-China Trade War  

A month ago, a ship carrying soybeans from the United States arrived in China. However, to dock in the port of Dalian, it took almost a month. Reason: The ongoing trade war between the U.S. and China. On Saturday, the ship finally found its place in the port of Dalian, and the major cause of delay was the imposition of hefty tariffs on the U.S. goods. On July 6, the ship arrived off the coast, carrying more than 70,000 tonnes of the U.S. soybeans on board. Shortly after, China decided to impose a 25 percent import tax on the U.S. goods that are worth $34 billion. Thus, to dock in Dalian, the ship had to wait for a month. This move was China was just a response to the trade dispute and trade war started by the U.S. President, Donald Trump and now, the world’s top economies are fighting and imposing a tax on each other, bringing down the world economy with them.

Tit-For-Tat Move Of China

The ship of the U.S. has become the first cargo that suffered from the trade war and had to incur new penalties. Moreover, there are two more ships carrying soybeans named Star Jennifer and Cemtex Pioneer have been anchored off China’s coast for last few weeks. It was reported that Star Jennifer has been sitting off since July 24 and it is unclear where the ship will head.

As reported by Reuters, Trump stated that the U.S. will collect tariffs on $16 billion worth of China’s import from August 23 to put pressure on China and force the country to negotiate the trade concessions. On the other hand, soybeans that are used to make cooking oil and animal feed are the major, $12 billion worth of export to China from the U.S. and the trade war has affected the prices of soft commodities.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Swamini Kulkarni holds a Bachelors Degree in engineering and works as a content writer. She is deeply fascinated by technological advancements and the trending topic.

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