Asian stock markets experienced a downturn on March 27, mirroring Wall Street's performance, after U.S. President Donald Trump announced new tariffs on auto imports. The Nikkei in Japan fell by 1.1%, with the auto sub-index sliding 3%. Toyota Motor shares dropped 3.4%, Honda Motor fell 2.8%, Nissan Motor slipped 2.6%, and Mazda Motor declined 6.4%. South Korea's KOSPI also decreased by 0.7%.
Trump's announcement included a 25% tariff on imported cars and light trucks, set to begin on April 2, escalating global trade tensions. The move is anticipated to increase prices and disrupt automotive production worldwide. While the market reaction was somewhat limited due to prior expectations, concerns remain about the potential economic impact.
The dollar index initially rose to a three-week high of 104.71 before settling at 104.46. Gold prices saw a boost, rising 0.3% to $3,028 per ounce amid the tariff uncertainty.