Shares of New Oriental Education & Technology Group Inc. (EDU) plummeted 5.02% in pre-market trading on Thursday, as Chinese ADRs faced significant pressure following the announcement of new US tariffs on China.
The drop in EDU's stock price comes as the United States moved to impose a 34% reciprocal tariff on China, escalating the ongoing global trade war. This new tariff is in addition to an existing 20% levy, bringing the total tariff on Chinese imports to 54%. The aggressive trade measures have sparked concerns about potential negative impacts on China's economic recovery and its export sector.
While New Oriental Education was not specifically mentioned in the reports, it is among the Chinese ADRs affected by the broader market reaction to the trade tensions. The US actions also include closing the "de minimis" trade loophole, which previously allowed low-value packages from China and Hong Kong to enter the US duty-free. These developments have raised fears about the potential consequences for Chinese companies operating in or exporting to the US market, contributing to the downward pressure on stocks like EDU.
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