Asian automakers faced another day of declining share prices as markets reacted to former U.S. President Donald Trump’s push for hefty new import taxes on foreign-made cars. Industry giants such as Toyota, Honda, and Hyundai recorded further drops, with analysts warning that the policy could squeeze profit margins and disrupt international trade flows.

Trump, who has long favored economic nationalism, recently floated the idea of imposing duties as high as 60% on auto imports—a move that could hit Asian manufacturers hardest. “If enacted, these levies would drive up costs for automakers and likely result in higher prices for American buyers,” explained a lead economist at Nomura Securities.

The uncertainty dragged down the MSCI Asia-Pacific Autos Index by another 2.1%, compounding losses from the previous session. Investors are now bracing for potential ripple effects across global supply chains.