By Shares of leading Asian automakers tumbled for a second straight session following former President Donald Trump’s latest comments on imposing steep tariffs on foreign-made vehicles. Companies like Nissan, Kia, and Subaru saw declines of up to 3% as traders braced for potential disruptions in U.S. trade relations.
Trump, who has previously advocated for aggressive trade protections, recently suggested raising levies on auto imports to protect American manufacturers. Analysts warn that such measures could hurt Asian exporters while also increasing costs for American buyers.
“The market is pricing in the risk of prolonged trade tensions,” said a strategist at Mizuho Securities. “If these tariffs materialize, we could see a structural shift in global auto supply chains.” The Nikkei Auto Index dropped 1.8%, adding to yesterday’s losses.