Japanese Stock Market Also Stumbles... 2% Decline on 'Trump Mexico Tariffs'

Nihon Keizai Shimbun: "Risk Aversion Intensifies"
Nissan, Toyota, and Other Automakers on High Alert

The Japanese Nikkei index turned down on the 3rd (local time) after four trading days amid concerns over U.S. President Donald Trump's tariff imposition on Mexico, as a pedestrian passes by the stock market electronic board in Chuo-gu, Tokyo. Photo by Nihon Keizai Shimbun (Nikkei)

On the 3rd (local time), the Japanese Nikkei index turned negative after four trading days due to a risk-averse reaction following U.S. President Donald Trump's tariff imposition on Mexico.

At 10:46 AM in the Tokyo stock market, the Nikkei average was down 2.09% from the previous close, trading at 38,746.49 yen. The index opened at 38,932.66 and fell to an intraday low of 38,454.38.

By stock, more than 90% of the Tokyo Stock Exchange (TSE) Price Index (TOPIX) components declined. Nissan, which has significant production in Mexico, dropped as much as 10% during the session. Toyota and Honda also fell sharply. High-priced major export stocks such as TDK and Tokyo Electron declined, contributing to the pull-down of the Nikkei average.

The United States plans to impose additional tariffs of 25% on imports from Canada and Mexico, and 10% on imports from China starting from the 4th. Canada and Mexico have announced plans to take retaliatory measures.

The Nihon Keizai Shimbun (Nikkei Newspaper) analyzed the market downturn, stating, "It is due to U.S. President Donald Trump signing an executive order on the 1st to impose additional tariffs on Mexico and others," and added, "As concerns about the impact on the global economy have grown again, investors' risk aversion has strengthened."

It further noted, "Although the U.S. tariff increase policy on Canada, Mexico, and China was already known to the market, the official announcement appears to have led to renewed stock selling."