The stock exchange in Taiwan earlier today
China may have been the key target of Donald Trump’s latest tariffs, but judging from the market reaction, America’s friends – such as Japan, South Korea and Australia – are suffering almost as badly as Beijing.
Since last Thursday, shares in carmakers such as Toyota, Honda and Nissan have been falling sharply due to the 25% levy on all imported cars into the US.
Japan’s banking shares are also hit, as economists say it is highly unlikely for the country’s central bank to be able to raise the cost of borrowing due to the significant impact on Asia’s second biggest economy.
Prime Minister Shigeru Ishiba has repeatedly emphasised that Japan is the biggest foreign direct investor in the US and therefore should be able to enjoy an exemption from some of the tariffs.
But so far, Tokyo’s negotiations with Washington have not been successful.
