US EditionAsia's Factory Activity Shrinks in May as US Tariffs Bite
- Manufacturing output in several Asian economies, including Japan, South Korea, Vietnam, Indonesia, and Taiwan, declined during May 2025, reflecting ongoing challenges in the region's industrial sector.
- The downturn was driven by sluggish consumption in China combined with the effects of US tariffs, while stalled trade talks and lingering uncertainty prevented increases in production.
- Japan's PMI rose to 49.4 but remained below 50, while South Korea's PMI hit 47.7 for the fourth consecutive month, showing continued economic weakness.
- US President Donald Trump raised global tariffs on steel and aluminium to 50 percent and accused China of breaching a tariff agreement; meanwhile, Japan insisted on tariff reductions across all US-imposed duties before any trade deal could be reached.
- These tariff actions and soft regional demand suggest Asia's manufacturing sector faces ongoing contraction with little near-term recovery expected.
13 Articles
13 Articles
Author of the book Reconstructing the Board. Entrepreneur, investor and business leader. At a time when big economic actors rewrite the rules of the game with irregular and transformative strokes, such as the 25% increase in tariffs on Chinese products, announced by the President of the United States, Donald Trump, in May 2025, affecting sectors such as technology, automotive and heavy manufacturing, many feel that the global board has been shak…
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Channel News Asia
Asia's factory activity shrinks in May as US tariffs bite
TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday (Jun 2), highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing
Asia’s factory activity shrinks in May as US tariffs bite
By Leika Kihara TOKYO (Reuters) -Asia’s factory activity shrank in May as soft demand in China and the impact of U.S. tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as U.S. President Donald Trump’s automobile tariffs cloud the outlook for exports. Adding to the…
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