Asian Markets Fall as Trump Announces 25% Auto Tariffs

Asian markets experienced significant declines following President Donald Trump's announcement of a 25% tariff on all imported vehicles and parts, set to take effect on April 2. Major automakers like Toyota, Mazda, and Hyundai saw their stocks plummet, with Toyota shares dropping nearly 3.5% and Hyundai losing over 4%. The tariffs are expected to raise costs for foreign manufacturers, particularly those without production facilities in the U.S., while American companies like Ford may face a relatively lesser impact due to higher domestic production. The announcement has raised concerns about a potential recession and inflation, as it intensifies ongoing trade tensions. In response, Japan's Prime Minister has requested an exemption for his country, while analysts warn of a bleak outlook for the automotive sector. Despite the initial market slump, some Asian indices showed signs of recovery as foreign institutional investors began buying equities.