Shares of Toyota Motor tumbled on Friday after U.S. President-elect Donald Trump threatened to impose a hefty fee on the automaker if it builds its Corolla cars for the U.S. market at a plant in Mexico.
Toyota dropped as much as 3.1 percent to 6,830 yen in early trade.
Other Japanese carmakers fell. Honda Motor lost 2.4 percent and Nissan Motor shed 2.0 percent, underperforming the broad Topix index, which slipped 0.7 percent.
A stronger yen was also expected to weigh on shares of automakers.