Nikkei Slumps as Trump's Tariffs Hit Japan With 24% Levy

MT Newswires Live04-03

Japanese shares ended deep in the red on Thursday after US President Donald Trump unveiled larger-than-expected tariffs, disrupting trade and supply chains.

The Nikkei 225 declined 2.78%, or 992.53 points, to end at 34,733.34.

The US slapped a 24% tariff on Japanese imports as President Donald Trump rolled out a sweeping trade policy, setting a baseline 10% levy and hitting key Asian partners with steeper rates.

China faces 34%, Vietnam 46%, and South Korea 25%, while the EU gets a 20% duty.

Trump also shut a loophole that let low-value goods from China slip through untaxed, a blow to its e-commerce giants. Trading partners are expected to hit back, raising the risk of price spikes and supply chain turmoil.

In economic news, Japan's services sector stalled in March as the au Jibun Bank PMI fell to 50.0 from 53.7.

Rising costs and weaker demand slowed new orders, while confidence hit a four-year low. The composite PMI dropped to 48.9, the sharpest contraction since November 2022.

On the corporate front, Ichiyoshi Securities (TYO:8624) booked a 912 million yen dividend from unit Ichiyoshi Asset Management as non-operating income for the year ended March 31.

Futaba (TYO:6986) will sell its US unit's Alabama factory for $3.9 million, expecting a 490 million yen gain. The deal closes May 15, a filing said.

D. Western Therapeutics (TYO:4576) said the US FDA accepted its lidocaine patch application, with a Sept. 24 action date. It co-developed the drug with MEDRx (TYO:4586).

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