China Caves, Pays $6 Million ‘Trump Tariff’ On Soybean Import
A United States vessel loaded with $23 million in soybean cargo has been unloaded at a Chinese port. The vessel has been the center of controversy in China for weeks as it sat awaiting a decision from the Chinese government as to whether or not the country would pay a 25 percent import tariff.
The vessel, named Peak Pegasus, was docked for 5-weeks before finally being unloaded at the Chinese port of Dalian.
Sinograin, a Chinese state grain company, has confirmed that they have conceded to pay the “Trump tariff,” which amounts to an additional $6 million in payment for import.
Comments from Chinese citizens on China’s social media app, Weibo, were none too thrilled over the news. Many citizens see the deal as a tax on the people.
“Are we imposing sanction on ourselves? Common people will have to pay for that,”
“Isn’t Sinograin state-owned? Who is this tariff hurting? Eventually, it is us paying the tariffs and it’s us being sanctioned!”
Peak Pegasus contains $34 billion in product from the United States.
Soybeans are one of the United States most prolific exports to China.
Sinograin told news sources that Peak Pegasus experienced delays due to “port congestion,” although, it seems from the outside that it was due to potentially internal rifts among government personnel.
There are two more United States’ soybean ships awaiting their fates in Chinese water. The Star Jennifer and Cemtex Pioneer have yet to be told whether or not their tariffs will be paid to allow Chinese ports to unload their goods.
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China may have a real issue with the domestic production of resources such as soybeans. It is possible the country will turn to Brazil to attempt to avoid U.S. tariffs.
However, the unloading of Peak Pegasus is an indication that an often Stoic-appearing China is feeling the effects of the tariffs.
Is this more Trump winning? While the trade war has hardly found a conclusion, it is difficult to argue that Trump’s negotiating tactics aren’t productive.
Trump’s tariffs have been at the center of controversy since they began in January of this year with washing machines and solar panels. Since then, a full-blown trade war has blossomed and become a Democratic campaign talking point that hopes to regain the House, Senate, and eventually, President Trump’s seat in the Oval Office.
However, recent reports have claimed that China might be easing back to the negotiating table with Trump. Worse more, a Chinese grain company has officially paid off a Trump tariff as a measure of potential desperation.
In both respects, this could amount to the greased wheel of Trump’s ‘fair trade’ ambitions spinning at an accelerated pace.
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.