iQiyi Inc. (NASDAQ: IQ), a leading Chinese online entertainment service provider, saw its stock plummet by 8.09% in pre-market trading on Friday. This significant drop comes in the wake of China's announcement of new tariffs and restrictions on U.S. goods, escalating the ongoing trade tensions between the two economic giants.

The Chinese government declared it would impose additional tariffs of 34% on all U.S. goods starting from April 10, as a countermeasure to the sweeping tariffs imposed by the U.S. Additionally, China announced export controls on certain rare earth elements to the United States and added 11 entities to its "unreliable entity" list, allowing for punitive actions against foreign entities.

This news has sent shockwaves through the financial markets, with Chinese ADRs (American Depositary Receipts) bearing the brunt of the impact. While iQiyi was not specifically mentioned, other major Chinese companies listed in the U.S. also experienced significant pre-market declines, including Alibaba (-9%), JD.com (-8%), and Baidu (-7%). The broader market reaction suggests that investors are reevaluating their positions in Chinese stocks amid the escalating trade tensions, contributing to iQiyi's sharp decline.