Alibaba Group Holding Ltd. (BABA-W) saw its shares plunge 5.10% in Wednesday's intraday trading, as investors reacted to escalating US-China trade tensions and their potential impact on Chinese exporters. The sharp decline follows a downward trend that began earlier in the week, with Alibaba's American Depositary Receipts (ADRs) falling 1.48% on Tuesday.

The sell-off appears to be driven by renewed concerns over US tariffs on Chinese goods. Recent reports indicate that Chinese exporters are struggling with tariff rates as high as 145% imposed by the Trump administration. This has led to a surge of Chinese sellers on social media platforms like Rednote, attempting to offload stock originally intended for US markets at heavily discounted prices to domestic consumers. The situation highlights the growing challenges faced by Chinese companies in navigating the increasingly complex international trade landscape.

Adding to the pressure, Alibaba and other Chinese e-commerce giants are being called upon to support struggling exporters. JD.com, for instance, has announced a 200 billion yuan ($27.35 billion) fund to help Chinese exporters pivot to the domestic market. While this move may provide some relief, it also underscores the severity of the export challenges and their potential long-term impact on companies like Alibaba. As trade tensions continue to simmer, investors appear to be reassessing the risks associated with Chinese tech stocks, leading to today's significant drop in Alibaba's share price.