TOKYOSEOUL, Jan 21 Reuters Shares of Japanese automakers and South Korean battery makers fell on Tuesday, after U.S. President Donald Trump said he could impose tariffs on Canada and Mexico soon and revoked the previous administration39;s executive order on electric vehicles.

But Chinese manufacturers bucked the trend, with stocks opening higher after Trump did not target China in his inauguration speech or immediately impose tariffs on Beijing as previously promised.

Shares of South Korean shipbuilders rallied with the expectation that Trump39;s plans to increase gas and oil production would spur demand for transportation vessels.

The volatility in Asian shares following Trump39;s inauguration underscores how policy changes under Trump could affect major manufacturers in some of Washington39;s closest allies in the region, such as Japan and South Korea. These countries39; automakers and suppliers are already grappling with the transition to EVs and intense competition from fastrising Chinese rivals.

Trump indicated potential 25 tariffs on Canada and Mexico, potentially starting on Feb. 1. This threat looms over Asian manufacturers as Trump aims to reduce the U.S. trade deficit.

Mexico in particular has long been a lowcost manufacturing hub for automakers, including Asian heavyweights.

Shares of Honda Motor, Japan39;s secondbiggest automaker, ended down 0.3 at 1,478 yen after giving up early gains.

Honda sends 80 of its Mexican output to the U.S. market, and its…