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Some Asian cars and truck, battery makers hit as Trump gets to work

Shares of Japanese car manufacturers and South Korean battery makers fell on Tuesday, after U.S. President Donald Trump said he might impose tariffs on Canada and Mexico quickly and withdrawed the previous administration's executive order on electrical cars.

However Chinese manufacturers bucked the trend, with stocks opening greater after Trump did not target China in his inauguration speech or immediately impose tariffs on Beijing as formerly promised.

Shares of South Korean shipbuilders rallied with the expectation that Trump's plans to increase gas and oil production would stimulate demand for transportation vessels.

The volatility in Asian shares following Trump's. inauguration underscores how policy modifications under Trump could. affect significant manufacturers in a few of Washington's closest. allies in the area, such as Japan and South Korea. These. countries' car manufacturers and suppliers are already coming to grips with. the shift to EVs and intense competitors from fast-rising. Chinese competitors.

Trump showed prospective 25% tariffs on Canada and. Mexico, potentially starting on Feb. 1. This danger towers above. Asian makers as Trump intends to reduce the U.S. trade. deficit. Mexico in specific has long been an affordable manufacturing center. for automakers, including Asian heavyweights.

Shares of Honda Motor, Japan's second-biggest. car manufacturer, ended down 0.3% at 1,478 yen after giving up early. gains.

Honda sends 80% of its Mexican output to the U.S. market,. and its chief running officer Shinji Aoyama alerted in November. it would have to consider shifting production if the U.S. were to impose long-term tariffs on imported cars.

Shares of Mazda Motor, which exported about 60% of. around 209,000 automobiles produced at its plant in Guanajuato,. Mexico, to the U.S. in 2024, ended down 2.0% after Trump's. remarks.

Mazda will assess what effect prospective responsibilities would have on. imports from Canada and Mexico, a business representative said.

' GREAT ISSUE'

Shares of Nissan Motor recovered from mid-morning. losses to end 1.2% greater, bucking the sag.

Nissan has 2 plants in Mexico, where it makes the Sentra,. Versa and Kicks designs for the U.S. market. It exports about. 300,000 lorries to the U.S. a year, President Makoto. Uchida stated in November.

The Trump administration's financial policies are of terrific. issue to significant countries in Asia, which rely on exports for. their financial development.

A downturn in the U.S. and international economies due to. extra tariffs and other steps will intensify the Japanese. export environment, Takahide Kiuchi, executive financial expert at. Nomura Research study Institute, stated in a note to customers, comments. that might likely be used to other countries in the region.

South Korea's Hyundai Motor and sister car manufacturer. Kia which produce cars in Mexico, pared early. gains of as much as 2.2% and 4.3%, respectively. They closed. flat and down 0.96%, respectively.

The South Korean duo said in a statement its production. there became part of its long-term, worldwide technique, including it was. committed to adjusting operations to the global. environment.

BATTERY MAKERS, SHIPBUILDERS BLENDED

Shares of South Korean battery makers dropped, with LG. Energy Option falling 4.3%, while SK Development. lost 3.7%.

Trump withdrawed a 2021 executive order signed by his. predecessor, Joe Biden, that sought to make sure half of all brand-new. vehicles offered in the United States by 2030 were electrical.

The move is expected to deal a blow to Korean battery. providers for Tesla, General Motors, Ford. and other major car manufacturers, which have been building new battery. factories in the United States to take advantage of the previous. administration's subsidies.

Trump provided an order on Monday for the U.S. to resume. processing export license applications for brand-new melted natural. gas (LNG) projects, part of an effort to dismantle his. predecessor's environment policies.

Trump formerly stated the United States' shipbuilding. industry requires South Korea's support.

South Korea's shipbuilding sector rallied. HD Hyundai Mipo. skyrocketed 9.7%, while HD Hyundai Heavy Industries. rose 6%.

(source: Reuters)