Global stock markets tumbled after the U.S. announced a 25% tariff on auto imports. The move hit Japan and South Korea hardest, with their automakers suffering steep losses. Meanwhile, Europe prepared for a weak opening, and Wall Street showed slight recovery after an initial drop.
Asia Takes the Biggest Hit
Japan’s Nikkei fell 1%, and South Korea’s KOSPI dropped 1%. Toyota slid 2.6%, while Mazda and Subaru crashed nearly 6%. But China stayed strong—its stocks even rose, as investors saw little direct impact from the tariffs.
Also Read: Will the US and EU Go to War—Over Cars?
European markets were set to open lower, with STOXX 50 futures down 0.5%. The tariffs left investors nervous about European carmakers like BMW and Volkswagen.
After a rough Wednesday, U.S. stocks saw slight gains early Thursday. But GM and Ford had already taken big hits, dropping 6% and 5% respectively.
World leaders reacted fast—Japan warned of retaliation, Canada hinted at counter-tariffs, and the EU called for diplomacy. Meanwhile, experts fear higher U.S. inflation, which could delay Fed rate cuts.
Final Thought: With markets on edge, all eyes are now on how countries will respond—will this spark a full-blown trade war?
Also Read: Tata Motors Shares Plunge 5% as US Tariffs Threaten Jaguar Land Rover’s Profits
