Trump tariffs jolt Asian automakers — Toyota likely set for most pain

In the wake of the newly announced U.S. tariffs on auto imports, Asian automakers are feeling the pressure, with their shares experiencing significant drops ahead of the duty implementation later this week. The sweeping tariffs, declared by U.S. President Donald Trump last Wednesday, impose a hefty 25% charge on cars not manufactured in the U.S., causing considerable distress among global carmakers.

Shares of Toyota, the Japanese automotive manufacturer, plummeted 9.4% in the three trading sessions following the tariff announcement. Nissan, another Japanese auto giant, also experienced a similar drop of 9.3%. South Korea’s Hyundai was not spared either, with its shares falling by a staggering 11.2%.

Japanese automakers, in particular, are expected to bear the brunt of these tariffs. Toyota, one of the leading car manufacturers in the U.S., is predicted to be the hardest hit. "Toyota is likely to be the worst affected due to its enormous U.S. sales," said Vivek Vaidya, Global Client Leader for Mobility at research firm Frost & Sullivan.

According to data from U.S. car marketplace Carpro, Asian automakers constituted six of the top eight automakers in the U.S. by sales volume in 2024. Toyota, with its high-volume sales, took the top spot, selling 1.98 million vehicles during the year, surpassing domestic giants such as Ford and Chevrolet.

The newly imposed tariffs are set to disrupt the global auto industry heavily, with Asian automakers, who have long enjoyed a significant presence in the U.S. market, expected to face substantial challenges. The move from the Trump administration appears to be a bid to bolster domestic car manufacturing, but it could significantly impact the dynamics of the global auto industry and potentially lead to price increases for U.S. consumers.