Asian carmakers hit hard by Trump's 25% import tariff

The decision by President Trump to impose a 25-percent tariff on imported cars resulted in a downturn in shares of Asian manufacturers.

According to CNBC, Japanese companies Toyota and Honda saw their stock values drop by 3.69% and 2.91%, respectively. Nissan, with two factories in Mexico, experienced a 2.92% decline, while Mazda Motor lost over 6%.

The new tariffs, effective April 2, will cover cars and light trucks produced abroad.

It's estimated that these tariffs could generate over $100 billion annually for the U.S.

Data from Tradeimex shows that Mexico is the largest exporter of cars to the U.S., accounting for nearly 25% of imported cars. Mexico, along with Canada (13%), hosts factories of American car manufacturers. Other major exporters include Japan (18.6%) and South Korea (17.3%). The largest European exporters are Germany, the United Kingdom, Slovakia, Italy, and Sweden.

Canada plans to respond to the new American car tariffs announced by President Trump, as reported by Canadian Prime Minister Mark Carney on Wednesday. He mentioned that a special government meeting on this issue will be held on Thursday.

He described the tariffs as a direct attack on Canadian workers

"It will happen soon… we have options. We can introduce retaliatory tariffs," Carney said. He did not provide details.

Carney added that Canadians have been observing U.S. actions for several months, which he characterized as a betrayal of the bilateral relationship. He emphasized the need for Canada to "defend its workers, defend its companies, defend its country, and defend it together." He also reminded that the Canadian government is committed to using all funds obtained from retaliatory tariffs on U.S. imports to support Canadian workers in affected companies.