Japanese automakers plunge on Trump’s 25% tariff announcement

Investing.com-- Japanese automaker stocks fell sharply on Thursday after U.S. President Donald Trump said he will impose 25% tariffs on imported cars, and light trucks on April 2.

These tariffs, if implemented, could significantly impact Japanese automakers, who rely heavily on the U.S. market for vehicle exports.

Among industry leaders, Tokyo-listed Toyota (NYSE: TM ) Motor Corp (H: 7203 ) shares fell 2.8% to 2806.0 yen as of 00:51 GMT.

Nissan (OTC: NSANY ) Motor (TYO: 7201 ) shares dropped 3.1%, while Subaru (OTC: FUJHY ) Corp (TYO: 7270 ) stock plunged 5.8%.

Honda (NYSE: HMC ) Motor (TYO: 7267 ) stock lost 2%, while Mazda Motor (OTC: MZDAY ) Corp (TYO: 7261 ) shares slumped 5.6%.

Mitsubishi Motors Corp. (TYO: 7211 ) shares were trading 4.5% lower.

Japan’s broader Nikkei 225 benchmark index was down 0.8%.

The tariffs, set to take effect next month, will increase the cost of vehicles imported into the U.S., forcing automakers to reconsider pricing strategies, production locations, and supply chains.