China’s economy showed its first big signs of damage from the trade war, as steep U.S. tariffs pummeled export orders and production at the country’s factories. A gauge of new export orders fell in April to its lowest reading since Covid-19 was ravaging the country in 2022,

China's factory activity slowed at the start of the second quarter, with a sharp fall in new export orders and the resumption of employment declines, a private-sector survey showed on Wednesday. The survey shows U.

American businesses are cancelling orders from China, postponing expansion plans and hunkering down to see what trade policy surprises President Donald Trump plans to spring on them next.

The data covers a period in which a trade war between the US and China escalated dramatically, with tariffs now well over 100 per cent in both directions. China’s official PMI manufacturing gauge had expanded in February and March.