China Accepts U.S. Soybean Shipment with 25 Percent Tariff
On Monday China accepted the 25 percent tariff on U.S. soybeans, as a vessel waiting to dock for five weeks reached port and began unloading. The move marks the first shipment of U.S. soybeans to be accepted with a 25 percent tariff stemming from the U.S.-China trade war.
China’s state grain stockpiling company accepted the shipment, even as government officials warned over the weekend China would source products, such as soybeans, elsewhere. The company will pay the tariff on the 70,000 metric ton shipment, with the tax estimated at $6 million, according to Reuters. The Chinese company claims the ship was delayed by port congestion, though the port has not seen any major backlogs for more than a month.
U.S. soybean exports to China in 2017 were worth $12.7 billion, but the trade war between the two nations has sparked concerns over how much U.S. soy China will purchase. Two other ships carrying U.S. soybean have been anchored along China’s coast for a few weeks now, and many expect China to start sourcing more soybeans from Brazil.