Two surveys of Chinese manufacturing show demand is weak amid a mounting tariff war with Washington over tre and techlogy. A monthly purchasing manrs’ index released by a business magazine, Caixin, rose to 50.4 from July’s 49.9 on a 100-point scale on which numbers above 50 show activity increasing. That indicates “renewed improvement” but said a gauge of new orders fell to its lowest level this year, magazine said. A separate survey released Saturday by an industry group, China Federation of Logistics & Purchasing, showed activity declining to 49.5 from July’s 49.7. It said market demand was “relatively weak.”

RE: 'Tremendous' Progress In US-China Tre Talks: President Donald Trump

China struggles amid US tariff hikes

Chinese exporters are struggling in face of U.S. tariff hikes. Exports to United States, ir biggest market, fell 6.5% in July. Washington and Beijing stepped up ir fight on Sunday by imposing ditional tariffs on billions of dollars of each or’s goods. Beijing has propped up ecomic growth by boosting government spending on construction. Ecomic growth sank to 6.2% over a year earlier in quarter ending in June, its lowest level in at least 26 years.

RE: In Escalating Tre War With China, US Consumers May See Higher Prices

US & China imposes tariffs on each or's goods

United States and China on Sunday put in place ir latest tariff increases on each or’s goods, potentially raising prices Americans pay for some clos, shoes, sporting goods, and or consumer items before holiday shopping season. President Donald Trump said U.S.-China tre talks were still on for September. “We’ll see what happens,” he told reporters as he returned to White House from Camp David presidential retreat. “But we can’t allow China to rip us off anymore as a country.” 15% U.S. taxes apply to about $112 billion of Chinese imports. All told, more than two-thirds of consumer goods United States imports from China w face higher taxes. ministration h largely avoided hitting consumer items in its earlier rounds of tariff increases.

RE: US-China Tre Talks Hit A Roblock

But with prices of many retail goods w likely to rise, Trump ministration’s move threatens U.S. ecomy’s main driver: consumer spending. As businesses pull back on investment spending and exports slow in face of weak global growth, American shoppers have been a key bright spot for ecomy. As a result of Trump’s higher tariffs, many U.S. companies have warned that y will be forced to pass on to ir customers higher prices y will pay on Chinese imports. Some businesses, though, may decide in end to absorb higher costs rar than raise prices for ir customers. In China, authorities began charging higher duties on American imports at midday Sunday, according to employees who answered phone at customs offices in Beijing and sourn port of Guangzhou. y declined to give ir names.

RE: Tre War: Latest Trump Tariffs Could Hit Consumers With Higher Prices

Philip Levy, chief ecomist at San Francisco freight company Flexport who was an viser in President George W. Bush ministration, said it’s hard to say for sure when latest tariffs may hit U.S. customers in form of higher prices. But, he ded, “If you h to pick a time to do it, this is worst possible time” because it’s when bulk of holiday goods are brought into country.