Baidu's stock (BIDU) plummeted 8.24% in pre-market trading on Friday, as tensions between China and the United States escalated. The sharp decline comes in response to China's announcement of new tariffs and restrictions on U.S. goods, which has sent shockwaves through the markets, particularly affecting Chinese ADRs.

The Chinese government declared it would impose additional tariffs of 34% on all U.S. goods starting April 10. Furthermore, Beijing introduced controls on exports of medium and heavy rare-earths to the United States, effective immediately. These actions are seen as retaliatory measures against the sweeping tariffs previously imposed by U.S. President Donald Trump.

The news has triggered a broad selloff in Chinese stocks listed in the U.S., with Baidu among the hardest hit. Other major Chinese tech companies such as Alibaba, JD.com, and PDD Holdings also experienced significant pre-market declines. The escalating trade tensions are raising concerns about the potential impact on Chinese tech firms' operations and their access to U.S. markets, contributing to the negative sentiment surrounding Baidu and its peers.