MW China has just announced retaliatory tariffs, and these stocks are getting hit hardest.

By Barbara Kollmeyer

Alibaba, Amazon.com, Tesla and XPeng under pressure

Investors didn't have to wait too long to see one of the world's biggest economies react to President Trump's sweeping tariffs that have roiled global markets.

The China Finance Ministry on Friday announced it would impose an additional 34% on U.S. goods beginning April 10. This week the U.S. announced an import tariff of 34% on China, which comes on top of a 20% tariff on those imports that the second Trump administration already put into effect. The result is a total duty of 54% on the country under Trump 2.0.

"On April 2, 2025, the US government announced the imposition of 'reciprocal tariffs' on Chinese goods exported to the US. This practice of the US is not in line with international trade rules, seriously undermines China's legitimate rights and interests, and is a typical unilateral bullying practice," said the country's finance ministry in a statement.

Markets had been bracing for an announcement from China that sent stock futures tumbling and the yield on the 10-year Treasury note under 4%. Futures for the Dow Jones Industrial Average (YM00) are now down 1,100 points after sinking 1679.39 points on Thursday for the biggest drop since June 11, 2020.

Investors began shedding stocks with exposure to China, with U.S.-listed shares of Chinese e-commerce giant Alibaba $(BABA)$ down 8% and China EV-maker XPeng $(XPEV)$ down 7%. Amazon.com $(AMZN)$, which sources items from China, slid over 6%, and shares of Tesla $(TSLA)$, whose second biggest market is China, fell over 5%.

-Barbara Kollmeyer

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April 04, 2025 07:34 ET (11:34 GMT)

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