In Asia, with the exception of China, stock markets experienced a decline after President Donald Trump revealed plans to impose a 25% tariff on imported cars to boost manufacturing in the U.S. The impact of this decision is complex as many American automakers and foreign companies with U.S. factories rely on components sourced globally.

The Nikkei 225 in Japan fell by 1%, with Toyota Motor Corp. stocks dropping by 3.2%, Honda Motor Co. by 2.8%, Nissan by 2.6%, Mazda Motor Corp. by 6.5%, Subaru Corp. by nearly 6%, and Mitsubishi Motors Corp. by 4%. Japanese Prime Minister Shigeru Ishiba is urging Trump to exempt Japan from these higher tariffs.

In South Korea, the Kospi decreased by 1%, and Korean automakers like Hyundai Motor Co. and Kia Corp. saw declines in their shares due to Trump’s announcement. However, shares in Greater China, except for Taiwan, were on the rise.

While Chinese automakers have been expanding globally, they have not made significant strides in the U.S., so the impact of the tariffs on them would be indirect. The Taiex in Taiwan dropped by 1.5%, and in Australia, the S&P/ASX 200 fell by 0.6%.

In the U.S., the S&P 500 and the Dow Jones Industrial Average experienced declines, and the Nasdaq composite had a significant drop due to weakness in Big Tech stocks. The recent sell-off in the stock market has been linked to overvaluation concerns regarding technology companies, which saw rapid price increases despite already high profits.