The highest rates on the imports of US products from China seem to be affecting the second largest economy in the world, according to monthly Chinese factory managers published Wednesday.
The official survey of the Logistics and Purchasing Federation of China shows that export orders will slow down in April, with Beijing and Washington in a confrontation after the president of the United States, Donald Trump, ordered combined tariffs of up to 145% in Chinese products.
China has imposed duties of Up to 125% In American products, with some exemptions. He has also ordered other reprisals, such as stricter restrictions in exports of some strategically important minerals used for high -tech products, such as electric vehicles.
The official manufacturing purchasing managers index fell to a minimum of 16 months of 49.0 of 50.5 in March. That is on a scale in which 50 marks the break between expansion and contraction. A private survey conducted by the Caixin Financial Information Group fell to 50.4 of 51.2.
“The strong fall in the PMIS probably exaggerates the impact of tariffs due to the negative effects of feeling, but still suggests that China’s economy is under pressure as external demand cools,” said Zichun Huang of Economics Capital in a report.
Earlier this week, the senior Chinese economic officials convened a press conference in which they showed Beijing’s support to the economy and its ability to do more to counteract the impact of rates.
The economy expanded to a solid 5% annual rhythm In 2024 and the ruler Communist Party has established an objective for growth at that level this year.
But that was before Trump intensified his commercial war, accumulating even higher tariffs in order to force manufacturers to exceed production to the United States.
“In general, in April, the expansion in supply and demand slowed down, with atrophied exports and employment was slightly reduced. Manufacturers sought to reduce actions, logistics were delayed and prices remained under pressure. Market optimism was significantly weakened,” said Caixin’s report.
Private economists have reduced their forecasts for the economy this year and next. Capital Economics estimates that the economy will expand only 3.5% in 2025.
He The economy grew 5.4% From a year earlier, in the first quarter of the year, when the companies rushed to overcome the highest tariffs. Chinese exports It increased more than 12% year -on -year in March.
Although some Chinese exports will probably be diverted to other countries, Trump’s commercial war has increased the risk of recession in the United States and its impact is expected to spread throughout the global economy.
He International Monetary Fund Said a recent update that the prospects for US economies. And global this year and then have worsened significantly.
Forecast that the global economy will grow only 2.8% this year, below its estimate in January 3.3%.
