China, Japan Factory Activity Dips Amid US Tariffs

Recent data show that both China and Japan's manufacturing sectors have contracted amid escalating U.S. tariffs led by President Donald Trump, highlighting growing vulnerability in major Asian economies. In China, factory activity fell to its lowest level in nearly two years, with the official purchasing managers’ index dropping to 49.0, below analyst expectations, as new U.S. tariffs of up to 145% took effect and trade flows with the U.S. sharply declined. Japan’s industrial output also fell more than expected in March, particularly impacting its crucial automobile sector, as newly imposed U.S. tariffs rattled exports and disrupted supply chains. Both countries are bracing for further economic headwinds, with Chinese policymakers preparing new stimulus measures and Japanese manufacturers expressing concern over the potential for a broader global slowdown. Analysts warn that these protectionist policies could prolong contraction and force Asian exporters to shift strategies. The situation underscores the far-reaching effects of U.S. trade actions on global manufacturing and economic stability.