Shares of Vipshop (VIPS), a leading Chinese e-commerce company, tumbled 6.27% in pre-market trading on Friday amid escalating trade tensions between China and the United States. The sharp decline comes as China announced a series of retaliatory measures against U.S. goods, significantly impacting Chinese stocks trading in the U.S.

According to reports, China's Finance Ministry declared it would impose additional tariffs of 34% on all U.S. goods starting from April 10. This move comes as a direct countermeasure to the sweeping tariffs recently imposed by U.S. President Donald Trump. Additionally, Beijing announced export controls on several rare-earth elements to the United States, effective immediately, and added 11 entities to its "unreliable entity" list, allowing for punitive actions against foreign entities.

The news has sent shockwaves through the markets, with Chinese ADRs being particularly hard hit. While Vipshop experienced a 6.27% drop, other major Chinese companies listed in the U.S. also saw significant declines. For instance, Alibaba fell 9%, JD.com and PDD Holdings dropped 8%, and Baidu declined 7% in pre-market trading. The broader impact was also evident, with US stock index futures extending losses and big tech stocks sinking in pre-market trading. This market reaction underscores the far-reaching implications of the escalating trade dispute on global commerce and investor sentiment.