U.S. Tariffs Hit Hard: Global Manufacturers Feel the Pain
Across Asia, exporters remain wary of U.S. demand, as both China and South Korea reported declines in export orders and manufacturing.
Quick overview
- Weak U.S. demand and tariffs from President Trump have hindered the recovery of major manufacturing economies.
- The eurozone experienced stagnation in new orders and a decline in employment levels, particularly affecting Germany and France.
- Asian economies, including China and South Korea, are also facing declines in export orders and manufacturing activity.
- Despite the overall downturn, Spain's factories showed growth, and the U.K. experienced a temporary boost in production.
Weak U.S. demand and President Donald Trump’s tariffs have slowed the recovery of major manufacturing economies, as new factory orders faltered, according to recent business surveys.
The eurozone suffered the most, with new orders stagnating and employment levels falling, its latest Purchasing Managers’ Index (PMI) showed. U.S. trade measures have taken a clear toll on Europe’s key industrial hubs, while Asian economies are also seeing signs of strain and hesitation.
In an effort to ease tensions, Trump and Chinese President Xi Jinping agreed last week to postpone reciprocal tariffs for one year, signaling a cautious pause in the trade standoff.
Countries Most Affected by U.S. Measures
Germany, the eurozone’s export powerhouse, showed another slowdown in output growth—engineering orders plunged in September—with little sign of a rebound. France’s manufacturing sector remained weak, while Italy’s posted a slight contraction.
Across Asia, exporters remain wary of U.S. demand, as both China and South Korea reported declines in export orders and manufacturing activity. China’s factory output fell for the seventh consecutive month.
Only a few countries managed to buck the trend. Spanish factories expanded at a faster pace than in September, standing out among the eurozone’s four largest economies.
Outside the European Union, U.K. factories had their best month in a year—but that surge was largely due to a one-off rebound after Jaguar Land Rover resumed production following a major cyberattack.
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