China's manufacturing slump: Impact of Trump's tariffs?
The Chinese economy experienced a decline in manufacturing activity in April 2025. The PMI for the industrial sector fell to 49 points, marking the lowest result since December 2023. This downturn is attributed to the new tariffs imposed by the USA.
After a promising start to this year, the Chinese economy encountered difficulties with the onset of the second quarter. A report from the Chinese National Bureau of Statistics (NBS) indicates that in April, the PMI for the industrial sector fell to 49 points, indicating a contraction in factory activities.
China slows down in industry. Effect of Trump's tariffs?
This is the lowest figure since December 2023, caused by the tariffs imposed by the United States. A PMI value above 50 points signals sector expansion, while a figure below indicates contraction.
Trade tensions are impacting more than just the manufacturing sector. The PMI for services also declined, reaching 50.4 points in April. This result fell below economists' expectations, who had predicted a figure of 50.7 points. The composite PMI, encompassing both manufacturing and services, dropped to 50.2 points, the lowest level since January.
The escalation of tariffs between China and the USA to the level of a trade war affects both of the world's leading economies. President Donald Trump imposed new tariffs, raising rates on Chinese imports to 145%. In response, China implemented retaliatory tariffs up to 125%.
