Higher rates on Chinese product imports in the United States are damaging the world’s second largest economy as requests plummeted, according to monthly surveys with Chinese companies released on Wednesday (30).
Invest in Small Caps?
Official research from the Chinese Federation of Logistics and Purchases shows that export requests have slowly slowed in April, with Beijing and Washington in a stalemate after US President Donald Trump, ordering combined tariffs of up to 145% over Chinese products.
China imposed up to 125% tariffs on US products, with some exemptions. It also ordered other forms of retaliation, such as stricter restrictions on strategically important mineral exports used in high -tech products such as electric vehicles.
American companies are canceling orders to China and postponing expansion plans while observing the situation unfolding.
Also read:
Continues after advertising
Industrial activity
The Chinese Industry Purchasing Managers Index fell to 49 in April, the lowest level in 16 months from 50.5 in March. On the index scale, 50 marks the dividing line between expansion and contraction.
“The strong drop on rates probably exaggerates the impact of tariffs due to the effects of negative feeling, but still suggests that China’s economy is under pressure from the weakening of external demand,” Zichun Huang of the capital Economics said in a report.
Large manufacturers will probably be more affected than the smaller ones, which are more labor -intensive, as China still has a cost advantage for these products, Anz Research economists said. “China’s cost of manufacturing for light industries can be a fifth of the US, which will hardly change,” they said in a report.
Continues after advertising
The information is from the newspaper O Estado de S. Paulo.
*This content has been translated with the aid of artificial intelligence tools and revised by the Estadão editorial team. Learn more in our AI policy.
