Asia's Factory Activity Weakens As Trump Hikes Tariffs

Asia’s factory activity weakened in January as sluggish Chinese demand and the threat of higher tariffs from U.S. President Donald Trump weighed on business sentiment, darkening the region’s economic outlook, Leika Kihara reported for Reuters.

Signs of China’s economic struggles and concerns over U.S. tariffs have rippled across the region.

The headwinds from China’s slowdown and uncertainty over U.S. trade policies pose major challenges for Asian policymakers, many of whom rely on Chinese consumption and global trade to support their economies.

A recent private-sector survey showed that while China’s factory activity continued to grow in January, the pace slowed, and staffing levels declined at their fastest rate in nearly five years amid rising trade concerns.

The results were better than last week’s official survey, which showed an unexpected contraction in China’s manufacturing sector.

Signs of China’s economic struggles and concerns over U.S. tariffs have rippled across the region. Japan’s factory activity declined in January at its fastest pace in 10 months, with business confidence sinking to its lowest level in more than two years.

South Korea’s manufacturing activity showed marginal expansion, while manufacturing output in Taiwan and the Philippines slowed as fears over global trade uncertainty mounted.