Global Factories Brace for Impact: The Ripple Effect of U.S. Tariffs

In March, factories worldwide faced slumping activities due to looming U.S. tariffs. While China's activities picked up, Japan, South Korea, and Taiwan reported declines. Despite some front-loading benefits, economists warn these tariffs could soon become a drag. European factories showed a slight bounce but remain wary of the future.

Factories around the globe experienced a downturn in activity in March as nations prepared for new U.S. tariffs to take effect. While some factories increased output ahead of the tariffs, surveys revealed overall sluggishness, with Asia and the U.S. manufacturing sectors notably affected.

Japan's factory activity declined at a record pace, and South Korea and Taiwan saw similar setbacks. However, China experienced a temporary boost as businesses rushed to ship goods to customers before tariff implementation. The U.S., meanwhile, saw its manufacturing PMI fall below the growth threshold.

Economists suggest that while temporary gains may have been seen in Europe, particularly in Germany, the overall outlook remains cautious. Manufacturing in Britain sees sharp declines, while global markets show mixed reactions with stock gains but signs of export slowdowns and weakened investor confidence.

(With inputs from agencies.)