Japanese automaker stocks fell sharply on Monday after U.S. President Donald Trump imposed tariffs on imports from Mexico, Canada, and China, raising concerns over supply chain disruptions and higher costs. The new tariffs include a 25% duty on Mexican and Canadian imports and a 10% duty on Chinese goods.
Mazda (-7.4%), Honda (-7%), Nissan (-6.4%), and Toyota (-5.5%) saw significant declines due to their reliance on Mexican and Canadian imports for U.S. sales. The broader Nikkei 225 index also dropped nearly 3%.
In response, Canada imposed retaliatory tariffs on $105 billion of U.S. goods, with Mexico expected to follow, adding to trade tensions affecting automakers.