Offbeat This American Cargo Ship Is Racing to China to Beat a Huge New Tariff on the Soybeans it's Carrying

08:05  06 july  2018
08:05  06 july  2018 Source:   bloomberg.com

Automakers to warn Trump of $45 billion cost hike if tariff imposed

  Automakers to warn Trump of $45 billion cost hike if tariff imposed An automotive trade group said Tuesday it would tell the Trump administration that a U.S. threat to impose a tariff of up to 25 percent on imported passenger vehicles under national security grounds would cost American consumers $45 billion annually, or $5,800 per vehicle. The Alliance of Automobile Manufacturers, a group representing General Motors, Toyota, Volkswagen and other major automakers, will file written comments with the U.S. Commerce Department later this week, spokeswoman Gloria Bergquist said."Nationwide, this tariff would hit American consumers with a tax of nearly $45 billion, based on 2017 auto sales.

A ship carrying U. S . soybeans is steaming toward northern China in a race to beat a 25 percent tariff . Peak Pegasus is expected to arrive in Dalian on Friday, the same day that China is scheduled to impose tariffs on imports from the U. S

China will place 25 percent tariffs on a list of 106 US goods, in a retaliatory action against the US' s new tariff on Chinese products. It was unclear whether the latest tariff hike was a direct response to that. Zhu expressed thanks to American soybean farmers who he said had lobbied the Trump

a person standing next to a body of water: Chinese police officers watch a cargo ship at a port in Qingdao in China's eastern Shandong province on March 8, 2018. © -—AFP/Getty Images Chinese police officers watch a cargo ship at a port in Qingdao in China's eastern Shandong province on March 8, 2018.

A ship carrying U.S. soybeans is steaming toward northern China in a race to beat a 25 percent tariff.

Peak Pegasus is expected to arrive in Dalian on Friday, the same day that China is scheduled to impose tariffs on imports from the U.S., according to shipping data compiled by Bloomberg and a person familiar with the matter. If it arrives as scheduled, it should be able to clear customs before the tariffs are imposed, according to the person, who asked not to be identified because they’re not authorized to speak to the media. Ship-tracking data currently shows it arriving at about 5 p.m. local time.

Here's a list of products getting impacted because of tariffs so far, including nails and whiskey

  Here's a list of products getting impacted because of tariffs so far, including nails and whiskey As tit-for-tat tariffs take effect in major global markets, some companies are already raising prices or making business changes to cope with higher costs. In response to Trump administration tariffs on steel and aluminum imports, Canada, Mexico and the European Union have each retaliated with duties on U.S. goods. Mexico's tariffs took effect June 5 on U.S. products such as pork, cheese, cranberries, whiskey and apples. The EU enacted tariffs Friday on more than $3 billion worth of U.S. goods including bourbon, yachts and motorcycles. Canada plans to implement tariffs on July 1 on up to roughly $12.

Soybean prices plunged more than 5 percent as traders grappled with the possible closure of a Trump is threatening to impose tariffs unless China abandons a host of policies aimed at vacuuming up American technology It ’ s more effective with China when you can do that,” said Dennis Wilder

It ' s still not clear when the new waves of tariffs announced by the two sides might take effect -- or if they'll be watered down in the meantime. The price of soybeans , a major US agricultural export to China , fell about 4%.

China plans to impose tariffs on $34 billion of American imports — including soybeans — from July 6 in retaliation against a raft of duties set to be imposed by the U.S. on the same day. Neither country specified a time when they announced the tariffs and China has said it won’t impose the taxes before the U.S. Beijing is 12 hours ahead of Washington.

  This American Cargo Ship Is Racing to China to Beat a Huge New Tariff on the Soybeans it's Carrying Soybeans have been a key battleground in escalating trade tensions between the two countries as China is the world’s biggest importer and America’s largest customer in trade worth $14 billion last year. The Asian country is expected to cancel or re-sell U.S. soybeans due to the additional duties and purchased 19 cargoes from Brazil last week. China typically imports from Brazil at this time of year before switching to the U.S., spurring concerns about a deficit in the fourth quarter.

Soybeans on the Chicago Board of Trade tumbled 14 percent last month due to the escalating trade tensions. The oilseed, the most exposed of all assets to a trade war, is now a buy, according to Goldman Sachs Group Inc. In China, soybean meal futures rose 4 percent on concerns about a possible shortage looming. China imports soybeans to process into soybean meal for its livestock industry.

US trade, immigration and biofuel policies hit farmers hard .
Farmers and agricultural economists are worried that president Donald Trump's trade, immigration and biofuels policies will cost farms billions of dollars in lost income and force some out of business. 

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