Japan’s stock market took a sharp hit on Monday, with the Nikkei 225 index plummeting nearly 9% to a 17-month low of 30,629.50, following U.S. President Donald Trump’s sweeping tariff announcement. As of 01:05 GMT, the index was trading 6.5% lower at 31,615.20. The broader TOPIX index also tumbled more than 8%, extending last week’s selloff led by banking and export-driven stocks.
Trump’s new trade policy, announced April 2, imposes a 10% universal tariff on all imports and a 25% levy specifically targeting automobiles and auto parts, effective April 9. The aggressive protectionist move is seen as a direct blow to Japan’s export-reliant economy, especially its key automotive and manufacturing sectors. Trump also unveiled a set of reciprocal tariffs aimed at overhauling global trade dynamics.
Japanese financial stocks were among the hardest hit. Japan Post Bank (TYO:7182) sank over 11%, while Mitsubishi UFJ Financial (TYO:8306) plunged 13%. Shares of Sumitomo Mitsui Financial (TYO:8316) dropped more than 12%, and Mizuho Financial Group (TYO:8411) fell over 10%.
Major Japanese automakers with deep ties to the U.S. market also saw significant losses. Nissan (OTC:NSANY) slid 7%, Mazda Motor (TYO:7261) fell nearly 8%, Toyota Motor (NYSE:TM) dropped close to 4%, and Honda Motor (NYSE:HMC) lost 4%. A strengthening yen further pressured exporters, adding to investor concerns.
Japan’s economy remains vulnerable to trade shocks, and the tariff escalation adds fresh uncertainty to an already fragile global market outlook. Investors are now bracing for more volatility ahead of the April 9 implementation date.


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