China’s factory activity likely contracted for a second month in May, a Reuters poll showed on Friday, suggesting trade tensions with major export markets are weighing on manufacturers’ minds as the world’s top two economies seek a way out of a tariff war.

President Donald Trump’s trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyzes decision making at some of the world’s largest companies.

The Gross Domestic Product (GDP), a primary indicator of the health of the economy, has shown a slight decline in recent figures. The annualized change in the inflation-adjusted value of all goods and services produced by the economy, a broad measure of economic activity, has fallen to -0.2%.

The U.S. dollar wobbled on Friday en route to its fifth-straight monthly decline as traders braced for further uncertainty around trade policy and U.S. fiscal health, while awaiting pivotal inflation reports later in the day.

An intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world’s largest car market.

U.S. President Donald Trump on Tuesday said the EU’s move to set up talks was positive and that he hoped Europe would "open up" to trade with the U.S. even as he reiterated his threat to unilaterally impose trade terms if no agreement emerges.