Trump administration eyes higher auto tariffs

U.S. Trade Representative Robert Lighthizer said Wednesday that he was examining all available tools to raise U.S. tariffs on Chinese vehicles to the 40 percent duties that China is now charging on U.S.-produced vehicles.

Lighthizer said that he was taking such action at the direction of President Donald Trump. Automotive duties on both sides have been increased by tit-for-tat tariffs. The United States imposed a 25 percent tariff on Chinese vehicles on top of the 2.5 percent it normally charges. China had lowered tariffs for all other countries to 15 percent, but imposed an additional 25 percent retaliatory tariff on U.S. vehicles.

Soybean crush margins turn negative

SOYBEAN crush margins in China have turned negative for the first time since early August, pressured by lower demand for the soymeal they churn out following an outbreak of African swine fever and high domestic bean inventories.

African swine fever, deadly to pigs but not harmful to people, has spread rapidly through China, with more than 70 cases reported across farms since early August. Soymeal is used to make animal feed. Crushers in the country’s eastern province of Shandong, the hub for soybean processing, are making a loss of 29 yuan (US$4.18) a ton compared with a profit of 60 yuan earlier this week, according to data provided by Shanghai JC Intelligence.

Construction machine makers face weaker sales

CHINA’S construction equipment industry is bracing for a decline in sales in 2019 after two years of rapid growth, as work slows on new projects and firms replace fewer old diggers and cranes, executives at an industry event in Shanghai said this week.

China is likely to see sales of excavators, loaders and dump trucks — proxies for the country’s infrastructure and building sectors — fall 7-8 percent next year, down from 30 percent growth in 2018, data from consultancy Off-Highway Research show.

VW’s Seat to develop electric car platform with JAC

VOLKSWAGEN’S Spanish Seat brand said it will develop an electric car platform together with China’s Anhui Jianghuai Automobile Group Corp. (JAC), as part of a broader Asian expansion push.

A battery electric vehicle platform will be developed for production in China and JAC Volkswagen will introduce the Seat brand in China by 2021, Seat said.