AsianFin -- China’s export momentum weakened in April, as new U.S. tariffs began to weigh on the country’s manufacturing sector, according to fresh data from official and private surveys released Wednesday.
The official manufacturing Purchasing Managers’ Index (PMI), compiled by the China Federation of Logistics and Purchasing, dropped to 49.0 in April from 50.5 in March—marking a 16-month low and slipping into contraction territory. A reading below 50 indicates a decline in activity. Meanwhile, the Caixin PMI, a private gauge more focused on smaller, export-driven firms, also fell to 50.4 from 51.2.
The drop in sentiment comes as Chinese exporters begin to feel the effects of newly imposed U.S. tariffs of up to 145%, ordered by President Donald Trump. In response, Beijing has introduced retaliatory duties of up to 125% on American goods, while also tightening export controls on critical minerals vital to the production of electric vehicles and other high-tech products.
The tit-for-tat measures are stoking uncertainty in global supply chains and dealing a fresh blow to China's already fragile manufacturing recovery.