Following US President Donald Trump’s announcement of broad tariffs on China, Canada, and Mexico, shares of South Korean and Japanese automakers and their suppliers saw the biggest drops in Asia on Monday.
Even though they were expected, the levies shocked some of the biggest manufacturers in the world. Investors are currently worried about the possibility of a wider slowdown in global growth as well as the possibility of diminished demand from the US, the largest economy in the world.
With many South Korean and Japanese businesses operating sizable operations in Mexico and depending on exports to the US, automakers were especially impacted. Honda’s stock fell more than 7%, while the world’s largest automaker, Toyota, and its smaller rival, Nissan, also witnessed stock declines of more than 5%.
