Factory activity across Asia shrinks as US tariffs bite

Export powerhouses Japan, South Korea, Taiwan hit in August; China bucks the trend

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TOKYO - US tariffs took a toll on factory activity across Asia, overshadowing a surprisingly upbeat performance in China, private surveys showed on Sept 1, keeping pressure on policymakers to underpin the region's fragile economic recovery.

The outcome reinforces concerns that manufacturers in Asia, which have been front-loading shipments to beat higher US tariffs, will face pressure on profits as exports weaken in the months ahead, analysts say.

Export powerhouses Japan, South Korea and Taiwan all saw manufacturing activity shrink in August, the surveys showed, underscoring the challenge Asia faces in weathering the hit from US President Donald Trump's tariffs.

"It's a double whammy for Asian economies, as they face higher US tariffs and competition from cheap Chinese exports," said Daiichi Life Research Institute chief emerging market economist Toru Nishihama.