President Donald Trump’s tariffs are taking a toll on China’s factories.

Three weeks into a trade war that pushed import tariffs of Chinese-made goods to 145%, an official report on manufacturing activity signaled that in April, Chinese factories experienced the sharpest monthly slowdown in more than a year.

The report, a survey of industrial firms published Wednesday by the National Bureau of Statistics, provides the first official indication of how the U.S. tariffs are affecting the Chinese economy. China has responded to the U.S. tariffs with 125% tariffs of its own on U.S. goods.

The trade brinkmanship threatens U.S. and Chinese growth — and potentially the global economy. Emerging signs of hardship in both countries have ratcheted up pressure on Trump and Chinese leader Xi Jinping to strike a deal to break the impasse.

Neither Beijing nor Washington appears ready to blink.

China’s Foreign Ministry released a video Tuesday, saying that the country refuses to cave to “a bully.”

Trump, in an interview with ABC News, continued to push back, saying China was “ripping us off like nobody’s ever ripped us off.” He said he believed China “probably will eat those tariffs,” defying anxiety among consumers and businesses about the impact of the import taxes he has imposed.

China’s manufacturing purchasing managers’ index fell to 49.0 in April, down from 50.5 in March. A reading below 50 indicates a deterioration in activity in the sector. The index was above 50 in the previous two months, driven by a bump in orders before the tariffs.

The survey’s reading on new orders of goods for export was at its lowest levels since the COVID-19 pandemic, dragging down the overall index.

In a research report Tuesday, Nomura Securities said that if Chinese exports to the U.S. were to drop 50%, 5.7 million people in China could lose their jobs immediately. That number could grow to 15.8 million workers once the long-term effects ripple through the economy.