KE Holdings Inc. (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services in China, saw its stock plummet by 10.94% during intraday trading on Friday. This sharp decline comes in the wake of China's announcement of retaliatory measures against the United States in an escalating trade war.

The dramatic drop in KE Holdings' stock price is largely attributed to China's declaration of new tariffs and export controls on U.S. goods. The Chinese government announced it would impose additional tariffs of 34% on all U.S. goods starting April 10, in response to sweeping tariffs imposed by U.S. President Donald Trump. Moreover, Beijing announced export controls on certain rare earth elements to the United States and added 11 entities to its "unreliable entity" list, allowing for punitive actions against foreign entities.

This news has sent shockwaves through the market, with Chinese ADRs and ETFs experiencing significant declines. As a major Chinese company listed on the New York Stock Exchange, KE Holdings is particularly vulnerable to these geopolitical tensions. The company's stock movement reflects the broader market sentiment, with investors seeking to reduce exposure to Chinese stocks amid escalating trade conflicts. As the situation continues to develop, market participants will closely monitor further developments in U.S.-China relations and their potential impact on companies like KE Holdings and the broader Chinese real estate sector.