Source link : https://www.mondialnews.com/2025/06/04/chinas-factory-growth-slows-in-may-as-us-tariffs-take-their-toll/
China’s factory activity showed signs of cooling in May, as the impact of renewed U.S. tariffs begins to weigh on manufacturing output and export orders. According to the latest official data released on Thursday, key indicators pointed to a slowdown in industrial expansion, highlighting growing challenges for China’s export-driven economy amid escalating trade tensions with Washington. The report underscores increasing headwinds for manufacturers as businesses navigate rising costs and uncertain demand on the global stage.
China Factory Output Declines Amid Rising US Tariff Pressures
China’s manufacturing sector experienced a noticeable slowdown in May, reflecting growing headwinds from escalating US tariffs. Industrial output contracted as export orders weakened, signaling cautious sentiment among manufacturers amid an intensifying trade dispute. Several key sectors, including electronics and automotive parts, reported declines in production volumes due to disrupted supply chains and reduced foreign demand.
- Electronics: Output down by 4.2%
- Automotive parts: Production dropped 3.7%
- Steel manufacturing: Declined 2.5%
Moreover, factory orders showed a marked reduction, highlighting the dampening effect of tariffs on both domestic and international buyers. Companies have begun to reassess investment plans, with many seeking alternatives outside China to mitigate tariff-related costs. The slowdown raises concerns over the broader impact on China’s economic…
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Author : Caleb Wilson
Publish date : 2025-06-04 14:47:00
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