FX.co ★ Japanese Shares Drop as Trump Threatens 35% Tariff

On Wednesday, the Nikkei 225 experienced a decline of 1.1%, closing around 39,500, while the broader Topix Index fell by 0.6% to settle at 2,814. This marked the second consecutive day of declines for Japanese equities. The market downturn followed comments from US President Donald Trump, who threatened to implement a 35% tariff on Japanese imports. This move is intended to coerce Tokyo into making trade concessions. Trump criticized Japan for being unwilling to accept US-made cars and rice, describing negotiations with the country as "very tough." His statements further fueled investor apprehension, particularly after Federal Reserve Chair Jerome Powell remarked that the Fed would have already reduced interest rates if not for the inflationary effects of Trump’s tariffs. The downturn was widespread, affecting all sectors. Notable companies that experienced significant losses included Lasertec, which decreased by 3.5%, Advantest by 4.6%, Nintendo by 2.4%, SoftBank Group by 2.3%, and Mitsubishi Heavy Industries by 3.8%.