Trade wars unleashed by US President Donald Trump have hit Asian stocks like a steamroller. According to Bloomberg, shares of Toyota, Honda, and Nissan have plunged by at least 5%, and more drops are to follow.
Asian stocks tied to exports have suffered a sharp decline following new tariffs imposed by Trump’s administration. Experts believe that these tariffs are the culprit of a new round of the global trade war. According to Bloomberg, the MSCI Asia Pacific Index has fallen by more than 2%. Many Asian investors had hoped that the tariffs would be delayed or canceled through negotiations. However, this did not happen. Analysts warn that these new tariffs could severely damage Chinese exports and further weaken China’s ailing economy.
The United States is a crucial market for Japan’s largest automakers, which sell cars produced or assembled in Mexico. Following Trump’s decision to impose tariffs on Mexico, Toyota, Honda, and Nissan shares tumbled by almost 5%. South Korea’s Kia, which owns a factory in Mexico, saw its stock plunge by over 5%.
Meanwhile, Chinese electric vehicle manufacturers Li Auto and XPeng sank by 6%, while sportswear brand Li Ning and home appliance giant Haier Smart Home slumped by more than 7%.
Shares of Japanese semiconductor equipment makers such as Tokyo Electron, Advantest Corp., and Disco Corp. all fell by 2%. As a result, the whole Asian stock market incurred heavy losses.
