Asian Factories Hit By Trade Turbulence: A Struggle With Tariffs and Demand

Asia's factory activity weakened in March amid a U.S. tariff war and slowing global demand. While China's activity picked up temporarily, Japan, South Korea, and Taiwan saw declines. Analysts warn this relief is short-lived as the trade war's impact looms larger on the horizon.

March saw a significant dip in factory activity across Asia, with the ongoing U.S. tariff war and weakening global demand casting a shadow over the region's economic forecast. Surveys conducted on Tuesday showcased prevalent concerns amongst businesses affected by the current trade dynamics.

Contrary to the general downtrend, China stood out by displaying a rebound in manufacturing activity, thanks to an urgency among factories to deliver goods ahead of impending U.S. tariffs. This momentary uptick, however, may soon take a downturn as evidenced by the growing trade tensions worldwide.

In stark contrast, other Asian powerhouses like Japan, South Korea, and Taiwan reported slumping manufacturing activities. These nations are bracing for further instability due to fluctuating U.S. trade policies, and experts forecast a challenging environment ahead for the industrial sector.

(With inputs from agencies.)