Industrial exports and production dropped in Asia due to the trade war

Industrial activities decreased in different countries in Asia during the month of May, as US customs duties and the state of commercial uncertainty caused the demand. In Vietnam, the new export requests fell for the seventh consecutive month, while the cost of the input fell for the first time in about two years, according to the data “Standard & Poor’s global” released on Monday. In Taiwan, production and new export sales have fallen for the second month in a row, and Indonesia has recorded the biggest decline in new requests since August 2021, and South Korean factories have seen the biggest decline in production in nearly three years. Vietnam, Indonesia, Taiwan, Japan and South Korea recorded a contraction in the general activity, while the purchase managers’ index remained below the level of 50 points that separate growth and contraction. In the Philippines, growth continued, but at a slower rate. These numbers reflect a continuous foggy in the light of customs duties led by President Donald Trump, and the volatile nature of US commercial policy. The increase in tension between Washington and Beijing, Trump, the tension at the end of last week, which promises to double custom duties on steel and aluminum, and accuses China of violating an agreement to lower the fees. China responded on Monday by rejecting Trump’s statements and accusing the United States of imposing new discriminatory restrictions. Korea Bank Governor Ri Chang-Young said that the results of commercial negotiations between the United States and China will affect all Asian economies, note that this interest exceeds the bilateral relations between the two parties. The governor added on Monday: “If we measure the impact of US customs duties on us, the indirect effect in China is extremely important because we are strongly linked by supply chains.” The legal ambiguity of the fees of “Liberation Day” remains the fees of “Liberation Day” that Trump was characterized by a state of legal ambiguity, after it was rejected by an American court and then the administration managed to appeal the decision. If applied, US fees will rise to its highest level in a century next month. Manufacturers in Asia have indicated that this fluctuation in policy has led to a decline in demand, and this could negatively affect it in the future. ‘Poor and the global world’ said ‘the poor demand and the increasing frequency of customers in compliance with new work due to US Customs’ duties’ negatively affected sales in Taiwan, which spurred businesses to reduce work and purchases. Companies across the region have indicated that low demand is through supply chains and directly affects the production lines. Increased export and delivery before suspension of the fees. The Maya data comes after a month in which the region saw a significant increase in export and freight movement, as US companies previously sent the goods during the 90 -day suspension period announced by Trump. However, the export of South Korea shrank in May, with the shipping to the United States fell by 8.1%, according to the data issued from the Customs Authority on Sunday. There is a positive impact on the suspension of Trump fees in the future, there are initial indicators indicating that Trump’s suspension of fees with the aim of allowing the opportunity to negotiate and initial agreements with the UK and China can contribute to improving economic activity. In Vietnam, an important product for clothing, shoes and smartphones components, businesses reported that the stability of customs helped improve production and increased optimism in the future.