China said Friday it would impose new tariffs on $75 billion worth of American goods. Beijing also announce it would resume 25% duties on U.S. autos, and a further 5% on auto parts and components — those will go into effect on Dec. 15. China had paused those auto tariffs in April.
In retaliation, U.S. President Donald Trump said Friday he'll hike tariff rates on most imports from China.
Shares of Japanese automakers with production facilities based in the U.S. dived in response.
Japanese automakers — including Nissan, Toyota, Mitsubishi, Honda, Mazda and Subaru — have 24 manufacturing plants, 45 research and development design facilities, and 39 distribution centers across 28 states in the U.S., according to data from the Japanese Automobile Manufacturers Association.
Together, Japanese vehicle makers build more than a third of vehicles produced in the U.S., according to the data.
Autos are among the top U.S. exports to China, forming around 19% of global U.S. vehicle exports in 2017. In 2018, roughly 230,000 American-produced vehicles were sold in China.
South Korean semiconductors, already hit by worsening trade tensions with Japan, also fell in early trade on Monday.
Chipmaker Samsung Electronics fell nearly 1.5% while its rival SK Hynix plunged 3.36%.
South Korean trade is heavily dependent on China and the U.S., as the country is closely interlinked in the supply chains between the two giants. Semiconductors are the main intermediate product exported by South Korea.