General Motors (GM) stock experienced a sharp decline, plummeting 5.90% in intraday trading, as tensions escalated in the ongoing global trade war. The automotive giant's shares tumbled following China's announcement of sweeping tariffs on U.S. goods, dealing a significant blow to the company's prospects in one of its key markets.

China revealed plans to impose additional tariffs of 34% on U.S. imports, set to take effect on April 10. This retaliatory measure is expected to have a substantial impact on U.S. automakers, with General Motors particularly vulnerable due to its significant presence in the Chinese market. In 2024, GM sold 1.83 million vehicles in China, accounting for 30.6% of its total vehicle sales, underscoring the potential severity of these new tariffs on the company's bottom line.

The broader market also felt the effects of this escalating trade war, with tech heavyweights, banks, and oil majors all experiencing significant losses. Investors are growing increasingly concerned about the potential long-term consequences of reduced access to the Chinese market and increased costs for American-made vehicles. As the automotive industry braces for these challenges, the situation has contributed to growing fears of a global recession, with investment bank JP Morgan now estimating a 60% chance of the global economy entering a recession by year-end, up from its previous 40% estimate.