Trump said he is raising the responsibility of automatic imports to encourage more manufacturing in the U.S., but because U.S. automakers, even foreign manufacturers with factories in the U.S., have complex effects, so they come from many components around the world.
Japan’s benchmark Nikkei 225 lost 1% to 37,662.36.
Toyota Motor Corp. shares Dove 3.2%, while Honda Motor Co. Nissan fell 2.6%. Mazda Motor Company shares fell 6.5%, while Subaru shares fell nearly 6%, and Mitsubishi Motor Company lost 4%.
Japanese Prime Minister Shigeru Ishiba reiterated his position on Thursday as he tried to convince Trump to exempt Japan from higher tariffs.
“We strongly demand that tariff measures do not apply to Japan,” he told reporters.
When asked about possible responses, he said no specific details were given: “All choices naturally need to be considered.”
Ivan Espinosa, who will become CEO of Nissan Motor Corp. on April 1, told reporters earlier this week that the automaker is considering a variety of situations because what Trump may do is “liquid.”
Toyota declined to comment.
Kospi in South Korea fell 1% to 2,616.95. South Korean automakers also feel the news that Trump has announced. Hyundai Motor lost 4.3% of its shares traded in Seoul, while Kia’s shares fell 3.9%.
Big Chinese stocks except Taiwan are higher. Hong Kong’s Hong Kong received 1% to 23,711.97, while the Shanghai Composite Index rose 0.3% to 3,379.19.
Chinese automakers and parts manufacturers have been expanding global sales, but have not expanded sales in the United States, so any impact of the tariff announcement is indirect.
But Taiwan’s benchmark, Taiex, sank 1.5%.
In Australia, the S&P/ASX 200 fell 0.6% to 7,951.50.
The S&P 500 fell 1.1% to 5,712.20 to break the run of calm trading. The Dow Jones industrial average fell from 230am to 132, or 0.3%, and closed at 42,454.79.
Big Tech’s weakness lowered the Nasdaq Complex by 2% to 17,889.01.
The main stock, known as the “magnificent Seven”, has been at the center of the recent sold-out of the U.S. stock market, with the S&P 500 10% below its all-time high earlier this month, a “correction” for the first time since 2023. In the madness of AI technology, Big Tech emerged again in the early days, with critics saying its price has risen too quickly compared to the profits that have grown.
NVIDIA fell 6%, with losses in its younger year so far reaching 15.5%. By far, this is the heaviest weight on the S&P 500.
Other AI-related stocks are also weak, including server builder supercomputers, which fell 8.9%, and power companies looking to electrify AI data centers.
Tesla has been fighting for other challenges, including fears that its CEO Elon Musk’s political anger would damage sales of electric vehicle manufacturers. Tesla fell 5.6%, extending its 2025 loss to 32.6%.
Other U.S. automakers also refused after Trump said he would announce tariffs on auto imports.
The U.S. auto giants have spread across North America after covering free trade deals in the United States, Canada and Mexico. GM sunk 3.1%. Ford electric motors grew from early to loss, and then increased by another 0.1%.
So far, the economy and job market seem to remain solid despite worsening sentiment by shoppers and business.
Last month economists predicted unexpected growth in orders for machinery, aircraft and other long-term manufacturing products when contractions were forecast. However, part of the data is regarded as an indicator of corporate investment, from growth to contraction. This could be a signal that businesses are delaying spending to see how tariffs play.
In energy trading, benchmark U.S. crude oil rose 10 cents to $69.75 a barrel. International standard Brent crude rose 7 cents to $73.13 a barrel.
In currency trading, the US dollar fell from 150.54 yen to 150.18 yen. The euro is priced at $1.0776, which is higher than $1.0754.
