Trump’s Tariffs Trigger Turmoil In China As Country’s Economic Tailspin Intensifies Per New Data

China’s services sector is buckling under U.S. tariffs, with new data showing a dramatic slowdown in April — the latest sign that President Donald Trump’s trade war is hitting Beijing on all fronts.

The Caixin China services purchasing managers’ index (PMI), a key indicator of activity in China’s services industry, dropped to its lowest level in seven months, barely staying above the threshold that separates growth from contraction, according to Bloomberg. A sub-index used to predict future economic activity fell to the second-lowest level recorded since the data began being collected.

The only time this sub-index has been lower was in February 2020 at the height of the COVID-19 pandemic.

“Service providers expressed concerns over the effects of U.S. tariffs,” Wang Zhe, senior economist at Caixin Insight Group, said in a recent report. “With a cloud over the market outlook, both 💼Business and consumer confidence are subdued, making it harder to boost domestic demand. The ripple effects of the ongoing China-U.S. tariff standoff will gradually be felt in the second and third quarters.”

The chill gripping China’s services industry follows a broader collapse across key sectors of the country’s economy. Financial institutions are in steep decline, with the country’s six largest banks