Weibo (WB), the Chinese social media giant, saw its stock price plummet by 5.81% in Monday's trading session, as escalating trade tensions between the United States and China sent shockwaves through Chinese ADRs and ETFs. The sharp decline comes amid a broader sell-off in Chinese stocks listed on US exchanges, triggered by Beijing's retaliatory tariffs on US imports and President Trump's threats of additional punitive measures.

The latest round of the trade war began with the US implementing tariffs of over 50% on Chinese goods. In response, China announced its own set of retaliatory tariffs on US imports, further intensifying the conflict. The situation took a dramatic turn when President Trump threatened to impose an additional 50% tariff on China if Beijing doesn't withdraw its 34% retaliatory duty by April 8th, 2025. This escalation has raised fears of a potential global economic slowdown or even a recession, particularly impacting Chinese companies.

Weibo's decline is part of a larger trend affecting Chinese ADRs. Other major Chinese stocks also experienced significant drops in the same trading session. E-commerce giants Alibaba and JD.com fell by 11% and 10% respectively, while XPeng and NetEase saw declines of 14%. The leveraged ETF YINN, which tracks Chinese stocks, plummeted by 24%, underscoring the severity of the market reaction. As the trade dispute continues to unfold, investors remain wary of the potential impact on Chinese tech companies and their future growth prospects in an increasingly uncertain global trade environment.