Autos lead Asian market losses after Trump's latest tariffs salvo

Asian carmakers tumbled aft Donald Trump said helium would enforce 25 percent tariffs connected vehicles imported into the United States. Photo: Roslan RAHMAN / AFP
Source: AFP

A plunge successful automakers deed Asia equities Thursday aft Donald Trump announced achy tariffs connected each imported vehicles and parts arsenic helium presses hardball commercialized policies galore fearfulness volition spark a recession.

Indications that levies lined up for the president's "Liberation Day" connected April 2 would beryllium little terrible than feared had fixed investors a small hope, and helped markets chalk up much-needed gains.

However, the White House's wont of alternating betwixt pugnacious speech and leniency has fanned uncertainty, and the latest announcement did small to soothe nerves.

"What we're going to beryllium doing is simply a 25 percent tariff connected each cars that are not made successful the United States," helium said arsenic helium signed an bid successful the Oval Office.

The determination takes effect astatine 12:01 americium eastbound clip (0400 GMT) connected April 3 and impacts foreign-made cars and airy trucks. Key automobile parts volition besides beryllium deed wrong the month.

About fractional of the cars sold successful the United States are made wrong the country. Of the imported motors, astir fractional travel from Mexico and Canada, with Japan, South Korea and Germany besides large suppliers.

Japan's authorities called the tariffs "extremely regrettable" portion Canadian Prime Minister Mark Carney called it a "direct attack" connected his country's workers.

There was small comfortableness successful Trump's comments that reciprocal measures lined up for adjacent week could beryllium "very lenient".

The car quality hammered carmakers successful Asia.

In Tokyo, Toyota and Honda shed much than 3 percent portion Nissan was disconnected 2.5 percent. Seoul-listed Hyundai gave up much than 4 percent.

US-listed car giants besides tumbled with General Motors, Ford and Stellantis each heavy successful the reddish successful after-hours trade.

"It's a stark reminder: Trump's not bluffing -- oregon astatine slightest he's doing a damn bully occupation pretending he's not," said SPI Asset Management's Stephen Innes.

"And if helium goes afloat throttle with this circular of tariffs -- particularly the reciprocal measures slated for April 2 -- markets are staring down the tube of the worst-case macro cocktail: faster inflation, slower maturation and a caller question of volatility.

The retreat successful the car assemblage deed broader markets, which were already shaky owing to worries implicit Trump's commercialized agenda.

Tokyo and Seoul astir 1 percent, with Sydney, Wellington, Taipei and Manila besides down.

However, Hong Kong and Shanghai eked retired gains with Singapore

There was a small cheer aft Trump told reporters astatine the White House that helium mightiness connection to trim tariffs connected China to get Beijing's support for the merchantability of fashionable societal media level TikTok.

Earlier this month, Trump said Washington was successful talks with 4 groups funny successful buying TikTok, which has been successful limbo aft a US instrumentality ordered it to divest from its Chinese proprietor ByteDance oregon beryllium banned successful the state owing to nationalist information concerns.

The broadly antagonistic time followed losses connected each 3 of Wall Street's main indexes up of the president's announcement, with the CBOE Volatility Index -- oregon "fear gauge" -- jumping astir 7 percent.

Market jitters were compounded by information Tuesday showing user sentiment had fallen to its lowest level since 2021 arsenic concerns astir higher prices increase.

Key figures astir 0230 GMT

Tokyo - Nikkei 225: UP 0.9 percent astatine 37,674.03 (break)

Hong Kong - Hang Seng Index: UP 0.6 percent astatine 23,624.74

Shanghai - Composite: UP 0.2 percent astatine 3,374.63

Euro/dollar: UP astatine $1.0766 from $1.0757 connected Wednesday

Pound/dollar: UP astatine $1.2900 from $1.2891

Dollar/yen: DOWN astatine 150.11 yen from 150.54 yen

Euro/pound: UP astatine 83.46 pence from 83.41 pence

West Texas Intermediate: UP 0.1 percent astatine $69.72 per barrel

Brent North Sea Crude: UP 0.1 percent astatine $73.85 per barrel

New York - Dow: DOWN 0.3 percent astatine 42,454.79 (close)

London - FTSE 100: UP 0.3 percent astatine 8,689.59 (close)

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Source: AFP