Toyota's stock (TM) plummeted 6.69% in Friday's pre-market trading session, as investors reacted to President Trump's sweeping new tariffs that are set to significantly impact the global automotive industry. The sharp decline comes as the Japanese automaker, along with other car manufacturers, faces potential disruptions to their supply chains and increased costs due to the trade tensions.

The tariff announcement has sent shockwaves through the automotive sector, with Japanese carmakers particularly exposed due to their large manufacturing operations in Mexico. Toyota, which produces its popular Tacoma pickup truck south of the border, is among the companies most vulnerable to the new trade measures. The tariffs are expected to increase costs for automakers and potentially lead to higher prices for consumers, putting pressure on sales and profits.

In response to the challenging environment, Toyota's North American subsidiary is reportedly planning to help local auto parts suppliers cope with the rising costs associated with the tariffs. This move highlights the complex nature of the automotive supply chain and the far-reaching impacts of the new trade policies. While this support may help mitigate some of the immediate pressures, it is likely to add to Toyota's overall costs in the short term.

As global markets continue to grapple with the implications of the new tariffs, investors are closely watching how automotive companies like Toyota will navigate these turbulent waters. The coming weeks will be crucial as the industry assesses the full impact of the trade measures and develops strategies to address the challenges ahead.