Weibo Corporation (WB), the Chinese social media giant, saw its stock plummet 5.89% in pre-market trading on Friday, as investors reacted to the latest escalation in trade tensions between China and the United States. The sharp decline comes in the wake of China's announcement of retaliatory measures against U.S. goods, which has sent shockwaves through global markets, particularly affecting Chinese ADRs.

According to recent reports, China has declared it will impose additional tariffs of 34% on all U.S. goods starting from April 10. This move comes as a direct response to the sweeping tariffs previously imposed by U.S. President Donald Trump. Additionally, Beijing has announced export controls on certain rare earth elements to the United States, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. The Chinese government has also added 11 entities to its "unreliable entity" list, further intensifying the trade dispute.

The news has had a broad impact on the market, with US stock index futures extending losses and big tech stocks sinking in premarket trading. Chinese ADRs have been particularly hard hit, with companies like Alibaba falling 9%, and JD.com, PDD Holdings, and XPeng declining by 8%. As a major Chinese tech company with a U.S. listing, Weibo's stock has not been spared from this market-wide selloff, reflecting investor concerns about the potential impact of these trade tensions on Chinese companies operating in or connected to the U.S. market. The situation underscores the growing risks and uncertainties faced by Chinese firms amid the ongoing economic dispute between the world's two largest economies.