Almost 3 trillion yen ($20 billion) has been wiped from the market value of Japan's top three carmakers - Toyota, Honda and Nissan - in three trading sessions this week.
Futures suggest European markets are looking at a dour Friday with the region's automakers stuck in the spotlight. The European automobiles and parts index was at its lowest level since early December and is poised for a sixth straight week in the red.
U.S. President Donald Trump's latest tariff salvo has drawn fierce criticism from politicians and industry executives across the globe. Wolfsburg, Germany-based Volkswagen said the entire automotive industry as well as customers will have to "bear the negative consequences".
It's decision time for car makers, who must now determine whether to localise more production in the U.S., swallow the costs of tariffs, or pass those costs on to consumers.
Volvo Cars, Volkswagen's Audi, Mercedes-Benz and Hyundai have already said they will relocate portions of their production.
Ferrari, which makes all of its cars in Italy, said it would raise prices of some models by as much as 10%.
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