RLX Technology (NYSE: RLX) saw its stock plummet 7.73% in pre-market trading on Monday, caught in a broader selloff of Chinese ADRs as trade tensions between the United States and China intensified. The steep decline comes as investors react to the latest round of retaliatory tariffs between the world's two largest economies, sparking fears of a deepening trade war and its potential impact on global growth.

The selloff in Chinese stocks was widespread, with major players across various sectors experiencing significant drops. While RLX Technology was not specifically mentioned in recent reports, the company appears to be swept up in the negative sentiment affecting Chinese firms listed on U.S. exchanges. Other notable declines included YINN falling 24%, tech giants like Alibaba and JD.com dropping 11% and 10% respectively, and electric vehicle makers such as XPeng and Li Auto seeing double-digit percentage losses.

The market turmoil follows China's announcement of new tariffs on U.S. imports, a direct response to increased U.S. levies on Chinese goods. This escalation has raised concerns about the potential for a global economic slowdown, particularly given China's already stuttering growth. As the trade dispute shows no signs of abating, investors are closely watching for any measures Beijing might implement to support Chinese exporters and bolster the domestic economy, which could potentially provide some relief for affected stocks like RLX Technology.