Asian auto stocks extended their slump Thursday as concerns over former President Donald Trump’s proposed tariffs on imported vehicles kept investors on edge. Major players like Hyundai, Mitsubishi, and Suzuki saw declines, with some stocks hitting multi-week lows.
Trump, who is campaigning for re-election, has vowed to impose tariffs as high as 60% on foreign cars to protect U.S. jobs. Analysts warn that such policies could disrupt supply chains and lead to higher prices for consumers worldwide.
“The market is reacting to the unpredictability of U.S. trade policy,” said a senior economist at SMBC Nikko Securities. “If these tariffs become reality, Asian automakers will face significant headwinds.” The sector’s losses dragged down broader Asian markets, with the regional auto index falling 1.9%.
