Manufacturing and export activities slow in Asia’s Big Three - Trump tariffs in the crosshairs
Already strained by the United States’ 25 per cent import tariffs, East Asian economies like China, Japan and South Korea are now bracing for even higher uncertainty as Washington eyes a steep 50 per cent duty. Reports show that all the three economic powerhouses experienced subdued export orders and manufacturing activity in May, just as signs of stabilisation had begun to emerge. Both South Korea and Japan’s PMI recorded contraction, hovering at 47.7 and 49.4, respectively, attributed to weakening global demand, with many citing US tariffs and rising cautious buying sentiment as key drags on production and order volumes.
South Korea’s export struggle deepens amid US tariffs
Evidently bearing the brunt of intensifying US trade policies, South Korea is seeing cracks in its export-driven economy. According to the trade ministry data, South Korea’s outbound shipments dropped by 1.3 per cent Y-o-Y in May 2025, valued at USD 57.27 billion. That marked the first annual drop in exports for the year, despite record-high semiconductor shipments, South Korea’s flagship export item.
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