Japan’s stock market dropped on Thursday as investors worried about the impact of new U.S. tariffs on cars. Automakers faced the biggest losses.
By early morning (0022 GMT), Japan’s Nikkei index was down 0.7%, after falling more than 1% earlier. The broader Topix index also fell 0.45% to 2,800.37.
Also Read: President Donald Trump Announces 25% Tariffs on Imported Cars and Car Parts
On Wednesday, U.S. President Donald Trump announced a 25% tax on imported cars and light trucks, starting next week. This decision is expected to increase car prices and slow down production, worsening the ongoing trade war.
Japanese car companies were hit hard:
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Toyota fell 2.5%
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Honda dropped 2.1%
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Nissan lost 3.6%
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Subaru had the biggest loss, dropping 5.6%
The automaker sector as a whole fell 2.26% in the stock market
