Toyota, Nissan, Hyundai shares tumble as Trump tariff reality bites
Global automakers and some of the biggest suppliers in Australia have watched share prices tumble as Donald Trump’s tariffs hit home.
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President Donald Trump’s sweeping 25 per cent tariffs on cars “not made in the US” is expected to hit Asian automakers hard, with Japanese giants set to feel it the most.
Industry expert, Frost and Sullivan global client leader for mobility, Vivek Vaidya told NBC the US is a vital market.
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“In a nutshell, the USA is an irreplaceable market for Asian automakers,” he said.
“Market leaders from Japan and Korea would be hugely impacted by this [tariff] announcement.”
Toyota will likely be hit the worst due to their huge US exposure.
Shares of Toyota fell 9.4 per cent in three sessions following the announcement, while Nissan dropped 9.3 per cent, and South Korea’s Hyundai lost 11.2 per cent.
Data from Carpro reports shows in 2024 Asian automakers made up six of the top eight automakers in the US by sales volume.
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Toyota took the top spot with 1.98 million vehicles sold during the year, beating Ford and Chevrolet.
Japan’s Honda and Nissan followed closely behind in fourth and fifth places.
According to Reuters, the US imported $474 USD billion worth of automotive products in 2024, including passenger vehicles worth $220 billion USD.
South Korean automakers will also be hit hard, with South Korea being the second largest exporters of vehicles to the US with 1.4 million vehicles shipped in 2024.
AutoForecast Solutions president and chief executive Joe McCabe said a shift of production facilities to the US would not be an immediate fix as relocating manufacturing operations is a multi-billion dollar endeavour.
Toyota and Nissan do have large production facilities in the US but it’s unlikely that they’ll be able to increase enough to offset the tariffs.
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Just this week, President Donald Trump doubled down on his tariff policy.
During an NBC interview, Trump was asked about potential price hikes, he stated
“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” he said.
Not all automakers will be challenged by these new tariffs.
Japanese automaker Suzuki does not sell many cars in the US and reported a 1 per cent gain year-to-date.
Originally published as Toyota, Nissan, Hyundai shares tumble as Trump tariff reality bites
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