China’s manufacturing sector experienced a significant contraction in April, with the Purchasing Managers’ Index (PMI) dropping to 49.0, its lowest level since December 2023. This decline is largely attributed to the impact of steep US tariffs imposed by President Donald Trump. The tariffs have disrupted China’s export-dependent economy, leading to order cancellations and production cuts. While the services and construction sectors showed slight expansion, the new export orders index plummeted to 44.7, the lowest since late 2022. Analysts anticipate that the Chinese government will enhance fiscal and monetary stimulus measures to counteract the negative effects of the tariffs.
— new from CNN
