NetEase (NTES), the Chinese internet technology company, saw its stock plummet 6.61% in pre-market trading on Friday. This sharp decline comes in the wake of China's announcement of new tariffs and restrictions on U.S. goods, sparking concerns about escalating trade tensions between the two economic powerhouses.

The Chinese Finance Ministry revealed plans to impose additional tariffs of 34% on all U.S. goods starting April 10, in a direct response to sweeping tariffs recently imposed by U.S. President Donald Trump. Furthermore, Beijing announced export controls on certain rare earth elements to the United States and added 11 entities to its "unreliable entity" list, allowing for potential punitive actions against foreign companies.

The news has sent shockwaves through the market, particularly affecting U.S.-listed Chinese companies. NetEase is not alone in its pre-market tumble, as other major Chinese tech and e-commerce firms are also experiencing significant declines. Alibaba fell 9%, while JD.com and PDD Holdings dropped 8%. The broader impact is evident in the performance of China-focused ETFs, with the KraneShares CSI China Internet ETF down 7.7% and the Direxion China CSI Daily Bull 2X plummeting nearly 18%.

As investors grapple with the potential implications of these new trade measures, the pre-market plunge in NetEase's stock reflects growing uncertainty about the future of U.S.-China trade relations and their impact on Chinese technology companies operating in a global market. The situation remains fluid, and market participants will be closely monitoring further developments and potential retaliatory actions from both sides.