Beijing:  Asia’s manufacturing sector faced a setback in October as new US tariffs and weak global demand led to a decline in factory activity across key export nations. According to recent economic data, China, South Korea, Malaysia, and Taiwan recorded slower output and falling new orders, showing how rising trade tensions are weighing on the region’s economy.

In China, factory activity dropped for the seventh month in a row as exporters struggled to fill orders amid declining demand from the United States. Official figures showed that exports to the US fell by about 27 percent compared to last year, while shipments to other markets rose slightly. Economists say that although Beijing has been trying to find new export destinations, the US remains an important trading partner whose demand directly affects China’s growth outlook.

South Korea also reported a fall in manufacturing activity in October. Export orders were hit by weaker demand from the US and Europe, despite a temporary trade understanding with Washington that offered limited relief from some tariffs. Other Asian economies such as Malaysia and Taiwan saw continued contraction, while Vietnam and Indonesia managed to post modest gains due to stronger domestic and regional demand.

The latest figures highlight the growing strain caused by the renewed tariff measures introduced by US President Donald Trump’s administration earlier this year. The tariffs, aimed at protecting American industry, have created uncertainty for Asian exporters and forced many companies to adjust their supply chains.

While Trump and Chinese President Xi Jinping recently agreed to delay new reciprocal tariffs for one year, analysts believe the deal offers only short-term relief and does not solve deeper trade and technology disputes between the two powers.

Economists are now watching whether China can still achieve its target of around five percent growth for 2025 without major stimulus measures. The International Monetary Fund has already warned that US trade actions could slow overall growth in the Asia-Pacific region to about 4.5 percent this year.

Experts say that the slowdown in “Factory Asia” is prompting manufacturers to look for alternative production bases. Countries such as India and Vietnam may gain from this shift as firms seek to reduce their exposure to US-China trade tensions.

Despite the temporary truce in tariffs, the manufacturing outlook across Asia remains fragile. Economists say sustained recovery will depend on whether global demand improves and if governments in the region can boost domestic consumption to offset export losses.