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American Focus > Blog > Economy > China’s manufacturing activity contracts as tariffs take effect 
Economy

China’s manufacturing activity contracts as tariffs take effect 

Last updated: April 29, 2025 8:32 pm
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China’s manufacturing activity contracts as tariffs take effect 
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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

China’s manufacturing activity contracted in April, according to an official survey, in a sign of the impact of US President Donald Trump’s trade war on the economy.

The country’s official purchasing managers’ index came in at 49, the lowest level since December 2023. A reading of above 50 marks an expansion.

The data covers a period in which a trade war between the US and China escalated dramatically, with tariffs now well over 100 per cent in both directions. China’s official PMI manufacturing gauge had expanded in February and March.

This is a developing story.

As tensions between the US and China continue to rise, the effects on global manufacturing are becoming increasingly evident. China, known as the world’s manufacturing powerhouse, is feeling the impact of the ongoing trade war. The latest official survey reveals a contraction in manufacturing activity, painting a grim picture of the economic consequences.

The official purchasing managers’ index, a key indicator of manufacturing health, has dropped to 49 in April. This is the lowest level seen since December 2023, indicating a significant downturn in production. With a reading below 50, the index signals a contraction in the sector, highlighting the challenges faced by Chinese manufacturers.

The escalation of the trade war between the US and China has played a crucial role in this decline. With tariffs soaring to unprecedented levels on both sides, the economic landscape has been greatly affected. The official PMI manufacturing gauge, which had shown signs of growth in the previous months, has now taken a hit, reflecting the strain of the ongoing trade tensions.

See also  SK Hynix profits double on memory chip stockpiling ahead of US tariffs

As the situation continues to evolve, it is essential to keep a close eye on developments in the global economy. The repercussions of the trade war are reverberating across industries and countries, underscoring the interconnected nature of the modern economic landscape. Stay tuned for updates on this unfolding story.

To stay informed on this and other key stories, unlock the Editor’s Digest for free. Roula Khalaf, Editor of the FT, curates a selection of top articles in this weekly newsletter, providing valuable insights and analysis on the latest developments in the world of business and finance. Don’t miss out on this exclusive opportunity to access premium content and stay ahead of the curve. Sign up now to unlock the Editor’s Digest and stay informed.

TAGGED:ActivityChinascontractseffectmanufacturingTariffs
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