الصفحة الرئيسية / Measures of Trump Threaten Trade War and Paralyze Global Manufacturing Sector.

Measures of Trump Threaten Trade War and Paralyze Global Manufacturing Sector.

Factories worldwide, from Japan to Britain and the United States, have experienced a significant decline in activity, according to economic surveys. 

U.S. President Donald Trump is set to announce a new package of tariffs on Wednesday, dubbed "Liberation Day," which will include increases on aluminum, steel, and cars, as well as tariffs on all goods imported from China. Trump emphasized that all countries would be subject to these measures, raising concerns among economic policymakers about a potential global slowdown at a time when the global economy has not fully recovered from the effects of the COVID-19 pandemic and continues to face political and economic disruptions.

The Purchasing Managers' Index (PMI), a key measure of manufacturing sector sentiment, revealed a clear slowdown in Asian factories, with business confidence affected by weak global demand and anticipation of the tariffs. Japan's manufacturing sector recorded its worst performance in a year, while contraction persisted in South Korea and Taiwan. 

China, however, was an exception, as its factories saw a relative rebound, with companies rushing to export goods before the new U.S. tariffs take effect.

In the United States, which saw its manufacturing sector expand in the first two months of the year, the Institute for Supply Management's manufacturing PMI fell to 49.0 points in March, down from 50.3 points the previous month, indicating sector contraction. The sub-index for new orders also dropped to its lowest level since 2023.

In Europe, the manufacturing sector showed signs of improvement for the first time in two years, with Germany recording an increase in industrial production, while France experienced a less severe slowdown in contraction. 

The British manufacturing sector faced challenges in March, as threats of new tariffs and tax increases contributed to a decline in new orders, leading to lower business confidence.

Economists believe that some improvement in the European manufacturing sector may be linked to increased pre-orders from the United States in anticipation of tariffs, suggesting that the coming months could see renewed growth slowdown.

Despite the tension in economic circles, global financial markets have risen, driven by gains on Wall Street. Gold prices also reached new record levels, indicating investors' search for safe havens.

Conversely, other indicators showed slowed growth, with South Korea's exports falling short of expectations and Japan's Tankan survey revealing a drop in major manufacturers' sentiment to its lowest level in a year.

2-04-2025, 23:10
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