Asian stocks faced losses on Friday as investors contemplated the uncertainties stemming from President Donald Trump's latest tariffs. In Tokyo, the Nikkei 225 dropped 2.2% due to increased selling of auto-related shares following Trump's announcement of a 25% tariff on auto imports. Shares of Toyota Motor Corp. fell by 2.7% and Honda Motor Co. by 2.3%.

In South Korea, the Kospi declined by 1.8%, with Hyundai Motor Co. losing 3.6% and Kia Corp. dropping by 3.1%. Hong Kong's Hang Seng decreased by 0.9%, while the Shanghai Composite index fell by 0.7%. Australia's S&P/ASX200 managed a slight increase of 0.1%, while Taiwan's Taiex and Bangkok's SET saw losses of 1.9% and 0.4%, respectively.

The previous day saw Wall Street closing with minor losses as Trump's tariff announcement affected auto stocks positively and negatively. The S&P 500 slipped to 5,693.31, the Dow Jones Industrial Average dropped to 42,299.70, and the Nasdaq composite fell to 17,804.03. General Motors experienced a notable 7.4% decline while Ford Motor fell by 3.9%.

Trump’s plan for tariffs has led to uncertainties over their application to compliant parts within the North American supply chain. This scenario could particularly impact U.S. automakers with diversified supply chains. Meanwhile, companies like Rivian and Tesla, which have more production in the U.S., were less affected by the tariffs. Rivian saw a 7.6% increase, while Tesla gained 0.4%.

As the April 2 deadline for more tariffs approaches, global stock markets are likely to face volatility. This deadline, termed “Liberation Day” by Trump, will see the rollout of reciprocal tariffs aimed at matching the burdens imposed on the U.S. by its trading partners.