U.S. tariffs and weak demand are slowing Asian manufacturing, with China and South Korea contracting, while Vietnam and Thailand benefit from lower tariffs.

U.S. tariffs and weakening demand from America are slowing manufacturing in Asia, with China’s factory activity contracting for seven straight months and South Korea’s PMI falling to 49.4, indicating contraction. Despite a temporary truce delaying new tariffs for a year, export orders dropped in China and South Korea, while Taiwan and Malaysia also saw declines. In contrast, Vietnam and Thailand gained from lower U.S. tariffs, with Vietnam’s new orders rising sharply and business sentiment at a 16-month high. India expanded due to strong domestic demand, but overall regional growth is expected to moderate amid global trade uncertainty and inflation risks.