Aerial view of Seoul downtown city skyline with vehicle on expressway and bridge cross over Han river in Seoul city, South Korea.
Mongkol Chuewong | Moment | Getty Images
Shares of South Korean autos tumbled Tuesday after U.S. President Donald Trump took aim at the country overnight, saying he would increase tariffs on Asia’s fourth-largest economy.
Trump said on Truth Social that the country’s legislature has not approved Seoul’s trade deal with Washington, and that tariffs on the South Korea will climb to 25%, from 15%.
Auto heavyweights Hyundai and Kia plunged as much as 4% and 5%, respectively, in South Korea.
The threat dented sentiment in South Korea’s Kospi, which dipped 0.36%, after clocking 15 days of gains out of the 17 sessions since the start of the year. Trump’s rhetoric did not seem to faze the small-cap Kosdaq, which climbed 1.41%.
Elsewhere, Asia-Pacific markets opened mixed. Australia’s S&P/ASX 200 started the day 1.22% up, reaching its highest level in almost 3 months, and coming back from a holiday on Monday.
Japan’s Nikkei 225 slipped 0.24%, while the Topix lost 0.31% on its open.
Hong Kong Hang Seng index futures were at 26,883, higher than the HSI’s last close of 26,765.52.