FX.co ★ Japanese Shares Sink as Trump Unveils Tariffs

On Thursday, the Nikkei 225 Index suffered a significant decline of 4%, falling below 35,000, while the Topix Index decreased by 3.3% to 2,560. This downturn pushed Japanese stocks to their lowest levels in months, triggered by US President Donald Trump's extensive implementation of reciprocal tariffs. These actions have intensified concerns over a potential global trade war, posing risks to the stability of major economies. President Trump announced a 24% tariff on Japanese products, along with 25% duties on car imports, severely impacting Japan's automotive sector. Moreover, the United States increased tariffs on Chinese goods to 54%, further clouding the economic prospects for Japan's crucial export market with China. All sectors experienced declines, with significant losses among prominent index players. Toyota saw a 5% drop, SoftBank Group fell by 6%, Tokyo Electron decreased by 6%, Fast Retailing went down by 4.3%, and Mitsubishi UFJ declined by 5.6%. In corporate developments, Nissan shares slid 5% following reports confirming the planned suspension of a section of its production line in Mexico.