Shares of iQiyi Inc. (IQ), the Chinese online entertainment platform, plunged 5.02% in pre-market trading on Thursday, as renewed US-China trade tensions and the announcement of new tariffs sent shockwaves through Chinese ADRs listed in the United States.

The significant drop in iQiyi's stock price comes in the wake of a move by the US government to impose a 34% reciprocal tariff on Chinese imports, in addition to the existing 20% levy. This brings the total tariff on Chinese goods to a staggering 54%, approaching the 60% figure threatened during recent political campaigns. The escalation in trade tensions has sparked concerns about potential negative impacts on Chinese companies with significant exposure to the US market.

iQiyi's decline is part of a broader selloff affecting Chinese ADRs, with other major players such as Alibaba, Baidu, and JD.com also experiencing pre-market losses ranging from 2% to 4%. The new tariffs, coupled with an executive order closing the "de minimis" trade loophole, are expected to put additional pressure on Chinese companies operating in or exporting to the United States. As tensions between the world's two largest economies continue to escalate, investors are reassessing the risks associated with Chinese stocks, leading to increased volatility in the market.