Asia’s Factories Stumble as US Tariffs Hit Orders

Asia’s factory activity continues to slow, with October 2025 PMI data showing contraction for the 7th straight month in China and South Korea. Export orders fell sharply as U.S. tariffs under Donald Trump’s administration continued to weigh on demand and raise production costs.

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Even though Trump and Xi Jinping agreed to postpone retaliatory tariffs for one year, analysts see it as a “temporary truce not a structural solution.”

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According to Reuters:

- China and South Korea reported declines in new export orders.

- Malaysia and Taiwan also saw factory slowdowns.

- Meanwhile, Vietnam and Indonesia still showed growth momentum.

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For China, the government is aiming for ~5% GDP growth in 2025 without major stimulus measures but the export slump could make that target harder to reach.

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TrendPro Insight:

The weak factory data highlights renewed pressure on Asia’s economies, potentially impacting regional equities, currencies, and commodities like gold and oil.

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“The drop in export orders may be an early signal of a global slowdown as 2025 comes to an end.”

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Traders should watch monthly PMI data from China, Korea, and Japan as key momentum indicators for Asian markets especially for USD/JPY, USD/CNH, and gold movements.