Japan’s Nikkei Stock: Autos Drag Japanese Shares Lower after Trump Tariff Threat, Banks’ Gains Cap Losses

Reuters

13:36 JST, February 19, 2025

TOKYO, Feb 19 (Reuters) – Japanese shares slipped on Wednesday, dragged by a decline in vehicle manufacturers after U.S. President Donald Trump’s auto tariff threat, while a rise in banks on bets for Bank of Japan’s (BOJ) interest rate hike capped losses.

The Nikkei share average fell 0.41% at 39,108.88 by the morning break.

“The Nikkei opened lower as remarks about tariffs on cars weighed on sentiment,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Trump said on Tuesday he intended to impose auto tariffs “in the neighborhood of 25%” and similar duties on semiconductors and pharmaceutical imports, the latest in a series of measures threatening to upend international trade.

The auto index slipped 1.5%.