The Chinese economy faces significant pressure from President Donald Trump’s 145% tariffs on its exported goods because April surveys indicate a major decrease in export orders. The manufacturing PMI from the China Federation of Logistics and Purchasing reached its lowest point in 16 months at 49.0 after reporting 50.5. The Caixin private survey results decreased to 50.4 from 51.2. The PMI indicators demonstrate weakening external market demand because U.S. businesses both stop placing orders and postpone expansion plans because of trade disputes.
China responded to the U.S. tariffs by imposing 125% duties on American products while implementing stricter controls on essential high-tech minerals needed for electric vehicles and technological products. Capital Economics expert Zichun Huang stated that negative market sentiment might amplify the PMI decline but the data shows China’s export-oriented economy faces increasing pressure. The ongoing trade war between the United States and China since Trump raised tariffs puts global supply chains at risk because American businesses now evaluate their sourcing methods.
The PMI index shows alignment with multiple economic problems that stem from domestic economic slowdowns and decreased consumer confidence. China’s strategic mineral restrictions to control rare earth dominance create potential risks for further economic separation from the rest of the world. The ongoing tariff dispute between Beijing and Washington will transform worldwide trade relationships while causing price increases and delivery problems for manufacturers and consumers across the globe.
