Global manufacturing is reeling as Trump-era tariffs and ongoing uncertainty continue to disrupt trade and paralyze business investment. Fresh data released this week shows factory activity contracting or stagnating across key regions, with few economies escaping the fallout.
US manufacturing registered its sharpest fall in five months in April, and Chinese factories fell into their deepest fall since late 2023. The two largest economies in the world—a combined tally of over 40% of world GDP—have been holding the world hostage through their standoff, stifling trade incentives and jolting supply chains.
In Asia, leading exporters South Korea and Taiwan also both saw orders and production drop sharply. Southeast Asian nations including Thailand and Malaysia also saw contractions. Europe’s numbers offered little relief, with the eurozone’s manufacturing index still in contraction despite reaching a 32-month high.
In Asia, leading exporters South Korea and Taiwan also both saw orders and production drop sharply. Southeast Asian nations including Thailand and Malaysia also saw contractions. Europe’s numbers offered little relief, with the eurozone’s manufacturing index still in contraction despite reaching a 32-month high.
The broader impact is clear: the JPMorgan Global Manufacturing index of future output dropped to its lowest since October 2022. Despite talk of trade deals, economists warn the damage may outlast any agreement. Disrupted supply chains and delayed investment decisions suggest recovery could take months—if not longer.
