FX.co ★ Japanese Shares Sink as Trump Unveils Tariffs

The Nikkei 225 Index fell sharply by 2.77% to settle at 34,736, while the Topix Index decreased by 3.08% to end at 2,569 on Thursday. This downturn saw Japanese stocks plummeting to levels not seen in several months. The decline followed the announcement by U.S. President Donald Trump of extensive reciprocal tariffs, heightening fears of a potential global trade war that could unsettle major economies. The U.S. imposed a 24% tariff on Japanese goods and a 25% tariff on car imports, significantly impacting Japan's automobile sector. In response, Japanese Trade Minister Yoji Muto expressed that Japan would persist in seeking exemption from these tariffs. He also announced that a special task force would be created to evaluate the consequences of U.S. tariffs. The market saw a decline across all sectors, including substantial losses from key index stocks such as Mitsubishi UFJ (-7.2%), Toyota (-5.2%), Kawasaki Heavy (-7.1%), Nintendo (-3.3%), and Advantest (-4.5%). Furthermore, Nissan saw a drop of 3.7% following news that a scheduled suspension of part of its production line in Mexico was indeed enacted.