Illumina Inc., a leading biotechnology company based in the United States, experienced a sharp 5.42% decline in its stock price during Tuesday's trading session. This significant drop appears to be a direct consequence of the escalating trade tensions between the U.S. and China, as well as China's decision to add Illumina to its "unreliable entity list."

The stock market plummet occurred in the aftermath of the U.S. imposing a 10% tariff on all Chinese imports, effective February 4th. China swiftly retaliated by announcing its own tariffs targeting various American exports, including a 15% levy on coal and liquefied natural gas, and a 10% tariff on crude oil and agricultural machinery.

However, the move that directly impacted Illumina was China's Commerce Ministry placing the biotechnology firm, along with apparel company PVH Corp. (owner of Calvin Klein and Tommy Hilfiger brands), on its "unreliable entity list." This decision was reportedly based on allegations that these companies had taken "discriminatory measures against Chinese enterprises" and "damaged" the legitimate rights and interests of Chinese companies. Inclusion on this list could potentially lead to sanctions or other punitive measures against Illumina within the Chinese market.