Global Factories Brace for Impact Amid Looming U.S. Tariffs

Global factory activity slumped in March as businesses rushed to fulfill orders before imminent U.S. tariffs. While China's industry benefited from front-loading orders, Japan and South Korea faced declines. Europe's manufacturing saw a temporary boost, but experts predict future challenges as tariffs take effect.

Factories worldwide, from Japan to Britain, experienced a significant downturn in activity this March, with businesses striving to deliver goods before looming U.S. tariffs take hold, according to global surveys released Tuesday.

U.S. President Donald Trump plans to unveil a tariff proposal on "Liberation Day," extending levies on essentials like aluminium, steel, and automobiles, sparing no nation from the economic repercussions.

While China's factories rushed orders benefiting from "tariff front-running," other regions, particularly in Asia, saw a decline, with Japan and South Korea's industries reporting a slump. Europe's manufacturing rebounded slightly, though analysts caution against overoptimism.