(Updates with comments)

TOKYO, Feb 3 (Reuters) - Japanese shares fell 2% on

Monday, led by automakers, as worries grew about the global

economy after U.S. President Donald Trump imposed tariffs on

Canada, Mexico and China.

The Nikkei had declined 2.1% to 38,757.43 by 0127

GMT, while the broader Topix was down 1.9% to 2,736.08.

The White House said on Friday the United States would

impose 25% tariffs on Canada and Mexico, and 10% on China.

Canada and Mexico immediately vowed retaliatory measures,

and China said it would challenge Trump's levies at the World

Trade Organization.

"Japanese stocks fell amid uncertainties about the global

economic outlook, which includes worries that Japanese exports

may be a target of Trump's tariff policy in the future," said

Kentaro Hayashi, senior strategist at Daiwa Securities.

"Also, if prices rise in the U.S. and the U.S. dollar

strengthens, yields will rise. That may affect Japan's monetary

policy."

Automakers fell sharply, with Toyota Motor ( TM ) losing

4.8% to drag the Topix the most. Honda Motor ( HMC ) fell 6.7%

and Nissan Motor ( NSANF ) lost 5%, with strategists saying their

auto production in Mexico is bigger than their Japanese peers'.

"If automakers face higher tariffs, they would have to raise

prices and their competitiveness might be hurt," said Fumio

Matsumoto, chief strategist at Okasan Securities.

All of the Tokyo Stock Exchange's 33 industry sub-indexes

fell, with automaker shedding 4.25% to become the

worst performer.

The Nikkei volatility index rose to its highest

since mid-December at 25.33.

Game maker Konami Group ( KNAMF ) jumped 12.7% to become the

biggest support to the Nikkei.

Of the more than 1,600 stocks trading on TSE's prime market,

85% fell and 12% rose, with 1% trading flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)