Trump's tariffs hit the global economy

"A slowdown in exports to the critical U.S. market was a key drag on the respective economies, as tariffs weighed on demand for their goods. In Japan, shipments of autos plunged after a pickup earlier in the year as many sought to get ahead of tariffs - even as a U.S.-Japan trade deal in July slashed tariffs from 25% to 15%. Switzerland's U.S. exports of watches, chocolate and more plummeted as the near-40% tariff rate imposed by Trump in August took effect."

"In recent years, strong exports and robust investment have helped make up for slumping demand from Chinese consumers. Now both sides of its economy are struggling in tandem, a recipe for a deeper slowdown. Factory output expanded by roughly 5% last month compared to the same period a year ago, though that is the slowest pace of growth so far this year. Spending on buildings and equipment contracted by 1.7% in the 10 months ending in October - an unprecedented decline."

"Between the lines: Exports unexpectedly crashed in October, shrinking more than 1% - the worst since February, when Trump announced an inaugural tariff hike on Chinese goods. Shipments to the U.S. fell 25% compared to a year earlier, but the data indicated the nation is struggling to find other sources of demand for its goods. Reuters reported there were lackluster exports to the EU and other Southeast Asian nations last month, too."

Japan's economy contracted nearly 2% annualized in Q3, the first decline in over a year, driven largely by a plunge in auto shipments as firms front-loaded orders ahead of U.S. tariffs despite a July U.S.-Japan tariff reduction. Switzerland's GDP fell 0.5% in the quarter, its first drop since 2023, as U.S. tariffs on watches, chocolate and other goods sharply reduced exports. China showed weaker-than-expected readings, with factory output slowing to roughly 5% year-over-year, exports crashing in October, and investment in buildings and equipment contracting 1.7% over ten months. Exports to the U.S. and other regions fell, limiting alternative demand sources.

Read at Axios