Chinese ADRs dropped in premarket trading as investors resorted to profit-taking in the absence of strong catalysts, ignoring strong gains on Wall Street overnight. YINN fell 4%; XPeng fell 5%; Bilibili, JD.com and Alibaba fell 3%; Li Auto, PDD Holdings, and Baidu fell 2%; iQiyi and Tencent Music fell 1%.

A world-beating rally in Chinese tech stocks is rapidly cooling as the initial shock-and-awe from DeepSeek’s AI model wanes, with investors demanding more real-life applications before bidding up shares further. While the nation’s tech earnings mostly topped estimates or came in line in the just-concluded reporting season, such expectations were already baked in.

President Donald Trump said he will announce tariffs on automobile imports in the coming days — and indicated nations will receive breaks from next week’s “reciprocal” tariffs.

Trump’s comments at the White House Monday sowed further confusion about his plans for a sweeping tariff announcement scheduled for April 2. The president told reporters he planned to proceed with long-threatened auto import tariffs “fairly soon, over the next few days” ahead of the broader package.

Trump said his tariff roll-out next Wednesday would focus on so-called reciprocal duties, featuring rates on a country-by-country basis corresponding to tariffs and other trade barriers on US products. The president twice on Monday signaled trading partners would receive possible exemptions or reductions.

Any further selloff will worry investors, and may potentially undermine a growing narrative that Chinese markets can become an alternative investment ground as investors reassess US exceptionalism.