Asian Manufacturing Sector Faces Turmoil Amid Global Trade Challenges

Factory activity saw a downturn in many of Asia's chief economies in September, with private surveys highlighting the impact of a U.S. economic slowdown and tariffs imposed by former President Donald Trump contributing to subdued Chinese demand.

This decrease places Asian policymakers in a predicament as they work to shield the export-dependent region from the repercussions of elevated U.S. tariffs. Japan, a powerhouse in exports, and Taiwan, a prominent tech hub, both witnessed contracting manufacturing activity, as per the surveys. This has left Asian businesses, reliant on U.S. markets, in a precarious position.

Alarmingly, China, a pivotal force in the global economy, persisted in a downturn, with official data revealing a sixth consecutive month of contracting manufacturing activity. This was driven by weak domestic consumption and heightened pressures from U.S. tariffs.