Japan’s Nikkei share average dropped to an eight-month low on Apr. 3, after US President Donald Trump announced new tariffs, including a 24% levy on Japanese goods.

The index fell as much as 4.6% in early trading, reaching 34,102.00, its lowest since August 2024.

By midday, it was down 3% at 34,673.69, with 206 of the 225 listed companies declining. The Topix index also fell 3.3% after a 4.3% drop.

The “Trump tariff shock” hit banks the hardest, with the sector dropping 7.2%, and regional lender Resona Holdings losing 9.5%.

The chip sector also suffered, with Tokyo Electron down 4.2% and Advantest losing 3.3%.

Exporters, especially automakers like Toyota, were pressured by a stronger yen.

A 25% duty on car exports to the US is set to take effect later today.

Japanese officials, including the country’s trade minister Yoji Muto, are considering options, but analysts warn that the market will likely remain volatile.