Shares of iQiyi Inc. (IQ) plummeted 8.09% in pre-market trading on Friday, as escalating trade tensions between China and the United States triggered a broad sell-off in Chinese American Depositary Receipts (ADRs). The sharp decline comes in the wake of China's announcement of new retaliatory measures against U.S. goods and technologies.

The Chinese government declared it would impose additional tariffs of 34% on all U.S. goods starting from April 10, in response to sweeping tariffs imposed by the U.S. President. Furthermore, Beijing announced export controls on several rare earth elements to the United States, effective immediately. These actions have significantly heightened concerns about the deteriorating economic relationship between the world's two largest economies.

While iQiyi was not specifically mentioned in the news, the company, as a prominent Chinese ADR, appears to be caught in the crossfire of these geopolitical tensions. The broader market reaction saw other major Chinese ADRs also experiencing significant pre-market declines, with companies like Alibaba falling 9%, and JD.com and PDD Holdings dropping 8%. This widespread sell-off in Chinese stocks listed on U.S. exchanges reflects investors' growing unease about the potential impact of the trade dispute on Chinese companies' operations and their access to U.S. markets.