Shares of Japanese automakers and South Korean battery makers fell on Tuesday, after U.S. President Donald Trump said he could impose tariffs on Canada and Mexico soon and revoked the previous administration’s executive order on electric vehicles.
But Chinese manufacturers bucked the trend, with stocks opening higher after Trump did not target China in his inauguration speech or immediately impose tariffs on Beijing as previously promised.
Shares of South Korean shipbuilders rallied with the expectation that Trump’s plans to increase gas and oil production would spur demand for transportation vessels.
The volatility in Asian shares following Trump’s inauguration underscores how policy changes under Trump could affect major manufacturers in some of Washington’s closest allies in the region, such as Japan and South Korea. These countries’ automakers and suppliers are already grappling with the transition to EVs and intense competition from fast-rising Chinese rivals.
