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| What It Means for Global Trade |
China – In January 2025, China's manufacturing sector experienced a slowdown in growth, with the Caixin/S&P Global manufacturing Purchasing Managers' Index (PMI) decreasing to 50.1 from December's 50.5, remaining just above the neutral 50 mark that separates expansion from contraction. This deceleration is attributed to heightened trade uncertainties, particularly the impending tariffs announced by U.S. President Donald Trump.
The announcement of new tariffs by President Trump has intensified concerns over a potential global trade war, leading to significant volatility in global stock markets. Major indices in Europe and the U.S. have experienced notable declines as investors react to the escalating trade tensions.
In response to these developments, Chinese manufacturers have reported a reduction in staffing levels at the fastest rate in nearly five years, coupled with a decline in export orders. Economists suggest that China's economic policies need to be adaptable to handle the evolving trade environment and international policy uncertainties.