Global manufacturing sentiment improved in parts of the U.S. and Japan, but the risk map is being redrawn by energy logistics and trade policy. U.S. manufacturing activity rose to a multi‑year high in May as firms rebuilt inventories and absorbed higher input costs tied to Middle East shipping disruptions. In Europe, flash PMI data signaled a sharper downturn in overall activity as energy and living‑cost shocks weighed on demand. On tariffs/trade, U.S.–China engagement remains “managed,” with talks around extending a tariff truce and exploring reciprocal tariff cuts on a defined basket of goods. Two sector signals stand out: (1) semiconductors/consumer electronics—Huawei outlined a longer‑horizon chip roadmap under continued U.S. restrictions; and (2) packaging—European PE/PP spot markets saw demand fade after prior price spikes, reshaping near‑term resin procurement.