Chinese ADRs dropped in premarket trading on Thursday after the US moved to impose a 34% reciprocal tariff on China and a levy of at least 10% on all of its trading partners, escalating a global trade war that could dent the global growth outlook and stoke inflation.

YINN fell 3%; PDD Holdings and JD.com fell 4%; NIO, iQiyi, and Alibaba fell 3%; Baidu, Li Auto, Trip.com, and Bilibili fell 2%; XPeng fell 1%.

The 34% reciprocal tariff on Chinese imports came on top of an additional 20% levy that was put in place after Trump was inaugurated this year. The cumulative 54% tariff is close to the 60% that he threatened to impose during his campaign, raising fears of derailing a fragile economic recovery in China, where exports were a bright spot last year. The US accounts for about 15% of China’s overseas shipments.

China is strongly opposed to the tariff and will take counteractions to protect its interests, the commerce ministry said in a statement on Thursday.

U.S. President Donald Trump also signed an executive order on Wednesday that closes a trade loophole known as "de minimis" that has allowed low-value packages from China and Hong Kong to enter the United States free of duties.

It said imported goods from China and Hong Kong sent outside the international postal network and valued at or under $800 would now be subject to all applicable duties.

Imported goods sent through the postal network and valued at or under $800 would now be subject to a duty rate of either 30% of their value or $25 per item, with that rate increasing to $50 per item after June 1.