Hong Kong stocks plummeted on Thursday as investor confidence took a hit after US President Donald Trump introduced a 34% reciprocal tariff on China.

The Hang Seng Index fell 1.52%, or 352.72 points, to end at 22,849.81. The Hang Seng China Enterprises Index slid 1.31%, or 111.37 points, at 8,420.14.

Total US tariffs on imports from China now stand at 54%, following the imposition of a new 34% reciprocal tariff on top of the pre-existing 20% levies.

The White House stated that the reciprocal tariffs on China also "apply equally to articles" of both Hong Kong and Macau.

Techtronic Industries (HKG:0669), which generated around 76% of its sales from North America in 2024, plunged 12%, while Nike supplier Shenzhou International (HKG:2313) retreated 14%.

Home appliance maker Midea Group (HKG:0300, SHE:000333), which ships appliances to the US, saw its Hong Kong-listed shares slip nearly 5%.

Alibaba (HKG:9988), which exports technology and consumer goods to the US, closed 5% lower.

China's Ministry of Commerce has responded to the tariff by warning that it will adopt countermeasures to safeguard China's rights and interests.

"There is no winner in a trade war, and protectionism leads nowhere," Xinhua News Agency reported, citing a spokesperson for the ministry.

Hong Kong financial markets will be closed tomorrow for the Ching Ming Festival. Markets will reopen Monday, April 7.