Back to today’s briefing

Story perspectives

Europe's Manufacturing Stabilizes Amid Tariff Fears; Japan Shines

7/3/2025

32 4

Summary

Japan Thrives, India Soars

Factory activity in Europe stabilized in June, with the euro zone PMI climbing to 49.5. Meanwhile, many Asian economies struggled under U.S. tariff fears. In a bright spot, Japan's manufacturing grew for the first time in over a year, and India's activity soared to a 14-month high as negotiators rush to finalize trade deals before looming tariffs hit.

Summary

Countries Pursue Trade Deals

Countries are racing against the clock to strike trade deals with the U.S. before looming tariffs hit on July 9. The EU, Japan, and India are grappling with national security concerns that complicate talks. In contrast, the UK celebrates reduced tariffs on car and aerospace exports, while China stands firm with anti-dumping duties on steel.

History

Historical Context

The 1930 Smoot-Hawley Tariff Act raised U.S. tariffs significantly, prompting retaliatory tariffs from other nations and contributing to a global trade collapse. Today, similar protectionist pressures are evident, with the euro zone PMI at 49.5 and India's manufacturing at a 14-month high. The historical precedent of the 1930s highlights the risks of economic isolationism and its potential impact on global trade stability.

1 of 3

Japan Thrives, India Soars

Factory activity in Europe stabilized in June, with the euro zone PMI climbing to 49.5. Meanwhile, many Asian economies struggled under U.S. tariff fears. In a bright spot, Japan's manufacturing grew for the first time in over a year, and India's activity soared to a 14-month high as negotiators rush to finalize trade deals before looming tariffs hit.

1 / 3