By Sherry Qin

Chinese consumer stocks fell sharply Thursday in the wake of President Donald Trump's higher-than-expected tariffs on China and other Asian economies that play a crucial part in its supply chains.

Shenzhou International Group, a major supplier for global apparel brands including Nike and Uniqlo, plunged 14% in Hong Kong. Chinese sportswear maker Anta Sports Products dropped 1.3% and Li Ning was down 1.4%.

Home-appliance maker Midea Group fell 4.6% and 3.5%, in Hong Kong and China trading, respectively. E-commerce giants Alibaba Group and JD.com were 3.85% and 3.8% lower, respectively, as well.

Trump on Wednesday imposed a 34% reciprocal tariff on China, on top of an earlier 20%, much higher than market expectations.

ING Chief Greater China Economist Lynn Song noted that the total 54% tariff is close to the worst-case scenario of 60% tariff Trump threatened on the campaign trail.

The high tariffs imposed on Southeast Asian countries such as Vietnam and Cambodia, which serve as transshipment points for China's exports of intermediate goods, could pose higher-than-expected risks to Chinese exports, Pinpoint Chief Economist Zhiwei Zhang said.

With Asia's production hubs particularly hit, all footwear and apparel companies will see margins affected as costs rise, Jefferies analysts said in a note.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

April 02, 2025 23:30 ET (03:30 GMT)

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