Peak Pegasus became unlikely hit on Chinese social media as it tried to beat tariff deadline 
 
 Giant shipload of soya beans circles off China, victim of trade war with US 
 
 A shipment of soya beans worth more than $20m (£15.5m) has been bobbing aimlessly in the Pacific Ocean for a month, a casualty of the escalating trade war between China and the US. 
 
 Lingering uncertainty over the cargo’s fate offered a timely reminder of the fallout from a dispute that intensified on Wednesday, as the US president, Donald Trump, unveiled a second round of tariffs on $16bn of Chinese goods, prompting Beijing to respond in kind. 
 
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 The Peak Pegasus, a 229 metre bulk carrier weighing 43,000 tonnes, has become the reluctant symbol of the potential consequences of this tit-for-tat trade spat. 
 
 The ship, owned by JP Morgan Asset Management, was scheduled to unload about 70,000 tonnes of American soya beans in the Chinese port of Dalian on 6 July, shortly after Trump imposed a first round of tariffs on $34bn-worth of goods. 
 
 As it rushed to shore in the hope of clearing customs before Beijing imposed retaliatory tariffs, the ship – and its protein-rich cargo – became an unlikely internet sensation on the Chinese social media platform Weibo. 
 
 However, the vessel arrived just too late and has been sailing around in circles ever since while the cargo’s owners, understood to be the agricultural commodity trading house Louis Dreyfus, decide what to do. 
 
 The Amsterdam-based company is thought to be paying about $12,500 a day to continue chartering the ship, which is idling in the Yellow Sea off the coast of China, indicating extra costs so far of more than $400,000. 
 
 Facebook Twitter Pinterest The Peak Pegasus cargo ship has been sailing in circles since it arrived, as shown on this Thomson Reuters tracking plot. Photograph: Thomson Reuters 
 
 Commodities experts said it could still make financial sense to keep the beans at sea, potentially for months, given the risk of making the wrong decision about what do next. 
 
 The market price of US soya beans has slumped since the trade war began as firms from China, the world’s largest importer, sought alternative sources. 
 
 That means potential alternative buyers for Louis Dreyfus’s soya beans in Europe or elsewhere would probably demand a discount on what they would have sold for originally. 
 
 Offloading them in China would incur a 25% tariff, adding around $6m to the cost of bringing them into the country. 
 
 “They [the cargo’s owners] have clearly got in mind the 25% tariff to take the goods into China and they’ll be weighing that against alternative buyers asking for a massive discount potentially equivalent to that,” said Michael Magdovitz, an analyst at Rabobank. 
 
 “They’d also have to pay an exorbitant price to divert the vessel from China to another destination.” 
 
 Soya beans are crucial for the production of cooking oil, biodiesel and meal used to feed livestock, including pigs reared to satisfy China’s appetite for pork. 
 
 One factor complicating the fate of the soya beans is uncertainty about the length of time that China can realistically switch to Brazilian soya beans as an alternative. 
 
 “The problem for the Chinese is that Brazil quickly runs out of soybeans around this time of year,” said Magdovitz. “It can’t be the only source for China.” 
 
 China accelerated imports before the tariffs came into force in order to build stocks and hold off paying the tax. 
 
 Magdovitz said the Peak Pegasus – and another soya bean-laden ship called the Star Jennifer that has also been idling offshore for a fortnight – could be waiting in the hope that China decides to subsidise soya bean importers. 
 
 That could render US imports affordable again, allowing the resumption of a soya bean trade worth $12.7bn a year. 
 
 Beijing blamed Trump for the escalation in the trade war as it announced 25% tariffs on another 333 separate US products from 23 August. 
 
 “This is a very unreasonable practice,” China’s commerce ministry said in response to Washington’s decision to target the additional $16bn of imports. 
 
 China said it would retaliate with 25% tariffs of its own on an equivalent amount of American imports, including steel, fuel, cars and medical products. 
 
 China and the US imposed tariffs on $34bn of each other’s goods in June and the latest move underlined Beijing’s determination to match protectionist measures like for like. 
 
 Shares on Wall Street opened slightly lower as fears that Trump will now make good on his threat to target a further $200bn of Chinese goods dented investor confidence. 
 
 The ratings agency S&P has expressed concerns that the trade war could spill over into services because China is running out of American goods to hit with tariffs. 
 
 The first Chinese trade figures since the imposition of the first round of US tariffs in early July showed that the country’s annual export growth edged up from 11.2% to 12.2% last month when measured in dollar terms. 
 
 The Guardian has approached Louis Dreyfus for comment. JP Morgan declined to comment. ||||| LISTEN TO ARTICLE 1:29 SHARE THIS ARTICLE Share Tweet Post Email 
 
 A ship laden with U.S. soybeans that was steaming toward northern China looks to have lost its race to arrive before import duties are imposed. 
 
 Retaliatory tariffs on U.S. goods have now taken effect after the U.S. implemented a raft of duties earlier in the day, China’s foreign ministry said at a press conference in Beijing on Friday afternoon. The Chinese government had previously said it will impose a 25 percent levy on shipments on soybeans among other U.S. agricultural produce and goods including automobiles. 
 
 The bulk carrier Peak Pegasus, which had been accelerating earlier in the day as it raced to the port of Dalian, was about 25 miles away from its destination as of 4:25 p.m. local time and slowing down, according to ship-tracking data. It’s scheduled to arrive at about 5 p.m., the data show. 
 
 Peak Pegasus is still heading toward Dalian as China announces its tariffs are now in effect. 
 
 Click to track the path of the Pegasus. 
 
 The U.S. fired the first shot in the deepening trade war, imposing tariffs on $34 billion of Chinese imports from 12:01 a.m. Friday in Washington, just after midday in China. 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. 
 
 — With assistance by Shuping Niu ||||| WASHINGTON—The Trump administration said Tuesday it would extend $12 billion in emergency aid to farmers amid signs the U.S. agricultural sector is beginning to feel the impact of President Donald Trump’s escalating trade disputes with major U.S. trading partners. 
 
 Agriculture Secretary Sonny Perdue said the U.S. government would provide incremental payments to support prices of some of the hardest-hit commodities, including soybeans, sorghum, cotton, corn, wheat and pork. 
 
 “This is a short-term solution that will give President Trump and his administration time to work on long-term trade deals,�? Mr. Perdue told reporters. Agriculture Department officials said the aid wouldn’t need congressional approval. 
 
 Mr. Perdue said the move, tentatively planned for the coming months, was in response to what he called U.S. trading partners’ “illegal retaliation�? to the policies of Mr. Trump, who has ordered tariffs on imports ranging from metals to materials to clothing to electronic parts. Those tariffs apply to goods from a broad range of countries, including China and those of the European Union. 
 
 U.S. trading partners are retaliating, with ominous implications for the American Farm Belt. China, a huge market for U.S. agricultural exports, has applied tariffs on $34 billion worth of U.S. goods, including soybeans and pork. Other places applying retaliatory tariffs include allies such as Canada, Mexico and the EU. 
 
 European Commission President Jean-Claude Juncker is scheduled to meet with Mr. Trump at the White House on Wednesday, and trade is expected to be high on the agenda. Mr. Juncker is expected to try to dissuade Mr. Trump from further escalation of trade fights, particularly over automobile imports to the U.S. 
 
 Congressional lawmakers, with few exceptions, expressed skepticism about the administration’s aid plan. Farmers, the critics said, need certainty on trade, not a bailout from the government. Even GOP senators who usually defend Mr. Trump expressed worry that aid might have to be extended to other sectors if he continues his trade fights on various fronts. 
 
 “What’s the strategy, what’s the end game here? At what point do we start seeing things move out of the chaotic state they are in now and to where we actually see new trade agreements?�? asked Sen. Mike Rounds (R., S.D.). 
 
 Sen. Heidi Heitkamp (D., N.D.) said more aid might be needed if Mr. Trump continues imposing tariffs and other countries retaliate. “Twelve billion sounds like a lot of money, but we’re going to be losing literally hundreds of millions of dollars in every state�? due to the trade disputes, she said. 
 
 Republican lawmakers from farm states said they expect to meet Wednesday afternoon with Mr. Trump, following his meetings with European officials. U.S. trading partners have targeted retaliatory tariffs on U.S. exports from rural communities, areas that supported Mr. Trump and Republicans in the 2016 election. 
 
 Polls suggest farming communities remain supportive of Mr. Trump. Victor Miller, who raises soybeans, corn and hogs near Oelwein, Iowa, said the Trump administration had recognized the financial strain some farmers face due to declining livestock and crop prices. “Yeah, there’s going to be some pain immediately,�? Mr. Miller said. “But that pain, endured, will lead to a much better future for all of us,�? he predicted. 
 
 Related Video WSJ's Gerald F. Seib looks at the trade deal between Japan and the EU, and explains how President Trump’s trade policy might drive other countries to form their own agreements. Photo: Martin Bureau/Press Pool 
 
 Farmers are beginning to feel the pain of Mr. Trump’s brinkmanship on trade. Soybean futures prices this month hit their lowest point in nearly a decade. They have fallen by 16% since the end of May, as agricultural traders weighed the potential impact of tariffs levied by China this month. 
 
 China, the world’s largest soybean consumer, last year bought $14 billion worth of the oilseeds from the U.S., but the Department of Agriculture this month projected that the tariffs would erode U.S. exports—and help push domestic soybean stockpiles for the coming crop year to a record 580 million bushels. 
 
 Corn and wheat prices also have been weighed down by tariff concerns, with China placing duties on those U.S. crops this month. 
 
 Hog farmers and pork processors are dealing with a 62% tariff on pork shipped to China and a 20% duty in Mexico, after both countries increased tariffs in early July. Mexico and China both rank among the top buyers of U.S. pork, and lean hog futures have dropped about 13% in the past two months. 
 
 Trump administration officials have acknowledged the financial hardship farmers could face as major trading partners retaliate against food commodities, but say farmers will share in the benefit of new trade policies that the administration says will be fairer to U.S. interests. 
 
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 Mr. Trump, addressing a gathering of veterans groups on Tuesday, urged patience on trade, despite concerns raised by critics: “Just stick with us,�? he said. “It’s all working out.�? 
 
 The plan announced by Mr. Perdue also includes purchases of surplus agricultural commodities for distribution to food banks. And the government will fund trade promotion to find new export markets for U.S. agricultural products. 
 
 Asked if he would support the aid to farmers, Sen. Thom Tillis (R., N.C.) said, “I don’t generally like federal bailouts, but if we’re going to have these uncertainties in the agricultural industry…we just have to look at it.�? 
 
 Earlier this year, the Trump administration imposed tariffs of 10% on aluminum imports and 25% on steel imports from Canada, Mexico and the EU. The president has also levied tariffs on $34 billion in imports of electronic goods, machinery and other products from China, with another $16 billion expected in the next few weeks. 
 
 Mr. Trump has also asked his team to study applying tariffs to all vehicles entering the U.S., and said his administration would assess tariffs on a further $200 billion of a range of consumer products. 
 
 —Natalie Andrews and Siobhan Hughes contributed to this article. 
 
 Corrections & Amplifications 
 
 Republican lawmakers from farm states said they expect to meet with President Trump following his meetings with European officials. An earlier version of this article incorrectly stated that the lawmakers expect to meet with Mr. Trump ahead of his meetings with European officials. (July 24, 2018) 
 
 Write to Jacob Bunge at jacob.bunge@wsj.com
– Trade disputes generally don't lend themselves to exciting visuals, but the new one between the US and China might be an exception. As the deadline neared for new penalties to take effect, a ship laden with US soybeans raced toward the Chinese port of Dalian, capturing the attention of users on the Chinese social media site Weibo, reports Reuters. "You are no ordinary soybean!" one user wrote in regard to the ship Peak Pegasus, which set out from Seattle last month. "Good luck bro!" wrote another. However, Reuters reports that the Pegasus arrived just a smidge late to beat the deadline, and Bloomberg also reports that the ship "looks to have lost its race"—unless perhaps Chinese officials were feeling generous. Related coverage: Soybeans? They just happen to be the top American agricultural export to China, as an interactive graphic at Reuters reveals. China took in about $12 billion worth last year. US farmers' pain will be Brazilian farmers' gain, reports Fortune. One huge factor: CNBC reports that a major issue behind this trade war is 5G—and whether the US or China will be the nation to dominate the next generation of the mobile internet. This is about far more than faster download times, however. "It is being touted as a technology that could support the next generation of infrastructure, from the billions of internet-connected devices expected to come online in the next few years, to smart cities and driverless cars."