Japan's Nikkei Down 4% as U.S. Tariffs On Asian Imports Take Effect

Akira Ito
09 Apr, 2025
Tokyo

Stock market indexes reversed their course in Tokyo trading and erased most of the gains of the previous session after the U.S. tariffs went into effect. 

The Nikkei 225 Stock Average dropped nearly 4%, and the broader Topix index declined more than 3%, as the U.S. slapped additional tariffs on Chinese goods. 

The yen traded in a tight rang with an upward bias, and closed at 145.45 against the U.S. dollar in choppy trading. 

The U.S. tariff of 24% on Japanese goods and 25% on Japanese vehicles went into effect this afternoon Tokyo time, and investors looked forward to the start of trade negotiations as early as next week. 

The U.S. in a tit-for-tat imposed an additional tariff of 50%, increasing the total to a whopping 104%, starting today, and prompting an outcry from Beijing. 

China is likely to impose high trade barriers on U.S. service providers, including accounting and law firms, and expand its list of "unreliable entities" to include leading U.S. tech and industrial companies. 

Japan's exports to the U.S. account for about 20% of its total exports and 3% of its gross domestic economy.

Meanwhile, China's total direct and indirect goods exports to the U.S. accounted for about 20% of total exports and about 3.5% of China's gross domestic product.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average plunged 3.9% to 31,714.03, and the broader TOPIX decreased 3.4% to 2,349.33. 

Sumitomo Mitsui Financial Group declined 4.5% to ¥3,027.0, Mitsubishi UFJ Financial Group plunged 5.3% to ¥1,570.0, and Mizuho Financial Group dropped 4.3% to ¥3,179.0.

Toyota Motor decreased 2.6% to ¥2,365.50, Nissan Motor Company fell 6.7% to ¥311.50, and Honda Motor Company declined 3.2% to ¥1,243.50.

Panasonic Holdings Corp. decreased 5% to ¥1,388.50, Canon Inc. fell 3.7% to ¥4,015.0, Sony Group declined 3.5% to ¥3,107.0, and Fanuc Corp. eased 3.5% to ¥3,114.0.