TOKYO, Japan: Asian markets took a hit on February 3 as automakers and exporters reeled from U.S. President Donald Trump's newly imposed tariffs on Mexico, Canada, and China.

The sweeping levies, though widely anticipated, sent shockwaves through the region, raising concerns over declining U.S. demand and a potential slowdown in global economic growth.

Automakers bore the brunt of the impact, with Japanese and South Korean manufacturers-many of whom have production hubs in Mexico-leading the declines. Toyota (7203.T) and Nissan (7201.T) both fell over 5 percent, while Honda (7267.T) tumbled more than 7 percent.

Nissan operates two factories in Mexico, where it produces the Sentra, Versa, and Kicks models for the U.S. market, exporting around 300,000 vehicles annually. Honda sends 80 percent of its Mexican production to the U.S. and previously warned it might reconsider production strategies if tariffs were made permanent.

South Korea's Kia Motors (000270.KS), which also has a plant in Mexico, dropped nearly seven percent. The country's electric vehicle battery makers, which had planned to build facilities in Canada to supply automakers like GM and Ford, also suffered. POSCO Future M (003670.KS) and EcoPro BM (247540.KQ) saw sharp declines of 9.1 percent and 8.7 percent, respectively.

Trump's move imposes 25 percent tariffs on most Mexican and Canadian imports and 10 percent tariffs on Chinese goods. While mainland Chinese markets were closed for the Lunar New Year holiday, Chinese stocks listed in Hong Kong reflected investor anxiety, posting losses on Monday.

In response, Mexico and Canada have announced retaliatory measures. Canadian Prime Minister Justin Trudeau declared 25 percent tariffs on $155 billion worth of U.S. goods, further escalating trade tensions.

The impact extended beyond automakers. Australia's major iron ore miners-BHP (BHP.AX), Rio Tinto (RIO.AX), and Fortescue (FMG.AX)-fell between two percent and five percent as concerns grew that tariffs could dampen global demand. Rio Tinto, which exports around 1.35 to 1.6 million metric tons of aluminum from its Canadian operations to the U.S., is expected to be hit hardest, with analysts projecting a 4 percent impact on its EBITDA.

Taiwanese tech firms with production facilities in Mexico also saw steep losses. Foxconn (2317.TW) dropped eight percent, Quanta (2382.TW) slid nearly ten percent, and Inventec (2356.TW) fell eight percent.