Asian auto stocks extend declines as Trump tariffs on car imports dent sentiment

Core Viewpoint - Asian auto stocks are experiencing declines due to concerns over U.S. tariffs on imported vehicles and parts, which are expected to significantly increase prices for consumers [1][2][3]. Group 1: Market Reactions - Japanese automakers Toyota and Honda saw declines of 4.29% and 4.24%, respectively, while Nissan, Mazda, and Mitsubishi also experienced losses [1]. - South Korean automakers Kia Motors and Hyundai Motor fell by 2.66% and 3.53%, respectively [2]. - Chinese electric vehicle maker Nio's shares dropped by 7.83%, with Xpeng and Li Auto also seeing slight declines [2]. Group 2: Tariff Details - New tariffs will take effect on April 2, targeting imported passenger vehicles, light trucks, and key automobile parts such as engines and transmissions [2][4]. - Analysts predict that these tariffs could raise prices for U.S. buyers by thousands of dollars, with imported car prices potentially increasing by $5,000 to$15,000 and locally made vehicles by up to $8,000 [3]. Group 3: Trade Relations and Retaliation - Concerns about a "protracted trade war" have escalated, with the EU, Canada, and other trading partners indicating intentions to retaliate against U.S. tariffs [4]. - President Trump has threatened to impose larger tariffs on Canada and the EU if they respond to U.S. trade measures [4]. Group 4: Implementation Challenges - The implementation of tariffs will require a process to apply duties specifically to non-U.S. content in auto parts, as stated by political consultancy Eurasia Group [4][5]. - Importers under the United States-Mexico-Canada Agreement (USMCA) will have the opportunity to certify their U.S. content, with the 25% tariff applying only to non-U.S. content [5].