financetom
Economy
financetom
/
Economy
/
Asia's factories stumble as US tariffs hit order books
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Asia's factories stumble as US tariffs hit order books
Nov 2, 2025 8:04 PM

(Reuters) -Asia's big manufacturing hubs struggled to fire up in October, business surveys showed on Monday, as weak U.S. demand and tariffs under President Donald Trump hit factory orders across the region.

While Trump's visit to Asia last week led to some progress in trade negotiations with large manufacturing economies such as China and South Korea, exporters continue to be cautious about U.S. demand.

Private-sector purchasing managers' indexes (PMIs) for October released on Monday showed manufacturing activity growing at a slower pace in China and falling in South Korea, with export orders in both countries declining.

Friday's official PMI survey showed China's factory activity falling for the seventh straight month, confirming suspicions that the earlier export rush to get ahead of U.S. tariffs had well and truly ended.

"The PMIs suggest that China's economy lost some momentum in October, with slower growth across manufacturing and construction," said Zichun Huang, China economist at Capital Economics. "Some of this weakness may reverse in the near term, but any boost to exports from the latest U.S.-China trade 'deal' is likely to be modest and wider headwinds to growth will persist."

CAUTIOUS OPTIMISM ON TARIFFS PROGRESS

In a meeting in South Korea last week, Trump and Chinese President Xi Jinping agreed to de-escalate tensions, including through a one-year delay in reciprocal tariffs, but the agreement does little to address a deeper divide between the two superpowers.

Policymakers in Beijing are looking to see whether China's $19 trillion economy is on track to hit its official 2025 growth target of around 5%, without needing to reach for further stimulus.

Trade data for September showed China's exports rising faster-than-expected, although this was mostly due to growth in new markets as U.S.-bound shipments tumbled 27% year-on-year.

Similarly, Seoul's trade deal with Trump announced last week secured lower U.S. tariffs on Korean goods, but was seen at best as a compromise that prevents Asia's fourth-largest economy from falling behind in global trade.

Elsewhere in Asia, continued declines were also seen in factory activity in Malaysia and Taiwan, PMIs showed, although Vietnam and Indonesia saw growth in their manufacturing sectors pick up.

(Reporting by Asia Newsrooms; Writing by Sam Holmes; Editing by Jacqueline wong)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US think tanks' policy 'grand bargain' offered as bargaining falls from favor
US think tanks' policy 'grand bargain' offered as bargaining falls from favor
Dec 4, 2024
WASHINGTON (Reuters) - In another era, agreement among analysts from leading left, center, and right-leaning think tanks over a sweeping plan to address major fiscal and social issues might carry some heft in Washington policymaking. In today's culturally infused, party-line politics, when establishment voices particularly among the U.S. Republican party have been sidelined, perhaps not so much. But after a...
US private payrolls gain slightly below expectations in November
US private payrolls gain slightly below expectations in November
Dec 4, 2024
WASHINGTON (Reuters) - U.S. private payrolls increased at a moderate pace in November, the ADP National Employment Report showed on Wednesday. Private payrolls rose by 146,000 jobs last month after advancing by a downwardly revised 184,000 in October. Economists polled by Reuters had forecast private employment increasing by 150,000 positions after a previously reported 233,000 jump in October. The ADP...
Private Employers Add Fewer November Jobs Than Expected: 'Manufacturing Was The Weakest We've Seen Since Spring'
Private Employers Add Fewer November Jobs Than Expected: 'Manufacturing Was The Weakest We've Seen Since Spring'
Dec 4, 2024
The pace of monthly employment growth among U.S. private businesses decelerated in November and slightly missed economist expectations. Private employers added 146,000 new payrolls in November, down from the downwardly revised 184,000 in October and slightly below the expected 150,000, as reported by Automatic Data Processing Inc. on Wednesday. Strong hiring at large employers led this month’s growth, yet industry performance was...
Fed's Musalem expects more rate cuts but says easing path is less clear
Fed's Musalem expects more rate cuts but says easing path is less clear
Dec 4, 2024
NEW YORK (Reuters) - St. Louis Federal Reserve President Alberto Musalem said on Wednesday he expects the U.S. central bank will be able to continue to cut interest rates but warned the pace of future actions has grown less clear. With inflation likely to continue to ebb to the Fed's 2% target, additional easing of moderately restrictive policy toward neutral...
Copyright 2023-2026 - www.financetom.com All Rights Reserved