Japanese Shares Drop as Trump Threatens New Tariffs
The Nikkei 225 Index fell 1% to below 40,100 while the broader Topix Index lost 0.5% to 2,840 on Tuesday, with Japanese shares snapping a five-day winning streak as renewed trade tensions with the US weighed on sentiment.
US President Donald Trump threatened to impose new tariffs on Japan, criticizing the country’s resistance to importing American rice. He also confirmed that the 25% tariff on Japanese auto imports would remain in place, citing the persistent trade imbalance.
The warnings come just days ahead of a key deadline, with investors closely watching whether Japan can reach a trade agreement with Washington before the 24% reciprocal tariff rate is reinstated next week.
On the data front, Japan’s latest Tankan survey showed an unexpected improvement in sentiment among large manufacturers in the second quarter, signaling resilience despite mounting trade pressures. Notable decliners included Lasertec (-4.1%), Disco (-1.9%), Sanrio (-3%), and Advantest (-1.8%).
Source: Trading Economics
