"Trade war hits Asia factories as exports, production slide", 2 June 2025

In Vietnam, new export orders contracted for a seventh straight month and input costs fell for the first time in about two years...

In Taiwan, output and new export sales all fell for a second month, Indonesia saw the steepest drop in new orders since August 2021, and South Korean manufacturers recorded the deepest decline in output in nearly three years.

Vietnam, Indonesia, Taiwan, Japan and South Korea all recorded a contraction in overall activity, with the Purchasing Managers Index remaining below the 50-no change mark. Activity in the Philippines, meanwhile, grew at a slower pace.

The figures reflect the ongoing uncertainty amid US President Donald Trump’s tariff campaign and the start-stop nature of US trade policies. Trump ratcheted up tensions late last week, vowing to double steel and aluminium tariffs and accusing China of violating an agreement to lower levies. Beijing retaliated on Monday by slamming Trump’s claim and lodging accusations that the US had introduced new discriminatory restrictions...

“When we actually measure the impact of US tariffs on us, the indirect impact through China is very important because we are very much connected with them through supply chains,” the governor said on Monday...

Asian nations would be among the hardest hit in the trade war, as many economies, such as Vietnam, rely heavily on exports to the US...