Nikkei Slumps as Trump Tariffs Hit Japan with 24% Levy
Japanese stocks ended in the red on Thursday after U.S. President Donald Trump announced larger-than-expected tariffs, disrupting trade and supply chains.
The Nikkei 225 fell 2.78%, or 992.53 points, to close at 34,733.34.
The U.S. imposed 24% tariffs on Japanese imports as President Donald Trump unveiled a sweeping trade policy, setting a base rate of 10% and hitting key Asian partners with higher tariffs.
China faces 34%, Vietnam 46% and South Korea 25%, while the EU gets 20% duties.
Trump also closed a loophole that allowed low-value Chinese goods to pass through without being taxed, a blow to its e-commerce giant. Trading partners are expected to retaliate, raising the risk of price spikes and supply chain disruption.
In economic news, Japan’s services sector stalled in March as Bank au Jibun’s PMI fell to 50.0 from 53.7.
Rising costs and weak demand slowed new orders, while confidence hit a four-year low. The composite PMI fell to 48.9, the sharpest contraction since November 2022.
On the corporate side, Ichiyoshi Securities (TYO:8624) booked a 912 million yen dividend from its Ichiyoshi Asset Management unit as non-operating income for the year ended March 31.
Futaba (TYO:6986) will sell its U.S. unit’s Alabama plant for $3.9 million, expecting a 490 million yen gain. The deal closed on May 15, according to a filing.
D. Western Therapeutics (TYO:4576) said the U.S. FDA approved its lidocaine patch application, with an action date of Sept. 24. The company is developing the drug with MEDRx (TYO:4586).
Source: Bloomberg
