Automakers and Battery Makers in Japan, South Korea Hit by Trump Tariff Threats
Japanese automakers and South Korean battery producers experienced a decline in share value on Tuesday due to U.S. President Trump's announcements. Trump stated that he may impose tariffs on Canada and Mexico and rescinded an executive order on electric vehicles.
Nissan Motor, Japan's third-largest automaker, lost 0.3% after an initial gain. Nissan operates two plants in Mexico, producing the Sentra, Versa, and Kicks models for the U.S. market.
Similarly, Honda Motor shares declined by 0.3%, reversing earlier gains. Honda exports 80% of its Mexican production to the U.S.
South Korean battery makers witnessed a significant drop, with LG Energy Solution falling by 5%, Samsung SDI losing more than 4%, and SK Innovation experiencing a similar decline.
The potential tariffs, which have been looming for months, pose a threat to Asia's manufacturing industries. Several automakers and suppliers rely on these countries to manufacture vehicles for export to the United States.
Japan's finance minister, Katsunobu Kato, indicated that the country will respond appropriately after reviewing Trump's policies.
The industry remains concerned about the impact of potential tariffs, which could exacerbate disruptions caused by the transition to electric vehicles and the rise of Chinese competitors.