President Trump’s tariffs are impacting China’s factories significantly. Just three weeks into a trade war that has raised import tariffs on Chinese goods to 145%, an official report indicates that in April, Chinese factories faced their sharpest monthly slowdown in over a year. This report, based on a survey of industrial firms by the National Bureau of Statistics, is the first official sign of how U.S. tariffs are affecting China’s economy. In response, China has imposed its own 125% tariffs on American goods.
This trade conflict threatens economic growth in both the U.S. and China, as well as the global economy. Signs of economic strain in both nations have increased pressure on President Trump and China’s leader, Xi Jinping, to reach a deal. However, neither side seems ready to back down. China released a video stating it won’t yield to “a bully,” while President Trump, in an interview with ABC News, reiterated his stance that China is “ripping us off.” He believes China will absorb the tariffs despite concerns from consumers and businesses.
The impact is evident as United Parcel Service plans to cut 20,000 jobs and close 73 buildings this year. General Motors has also revised its profit forecast due to tariffs on imported cars and parts. U.S. consumer confidence has dropped to its lowest in five years.
China’s manufacturing purchasing managers’ index fell to 49.0 in April from 50.5 in March. A score below 50 signifies a decline in sector activity. Economists had anticipated a higher figure.
— new from The New York Times