NetEase (NTES) shares plummeted 7.13% in Friday's trading session, as investors reacted to China's announcement of retaliatory measures against the United States, including new tariffs and export controls. The sharp decline in NetEase's stock price is part of a broader selloff affecting Chinese ADRs listed on US exchanges.

China's Finance Ministry declared additional 34% tariffs on all US goods, set to take effect from April 10. This move is seen as a direct countermeasure to the sweeping tariffs recently imposed by US President Donald Trump. Additionally, Beijing announced export controls on medium and heavy rare-earth elements to the United States and added 11 entities to its "unreliable entity" list, further escalating trade tensions between the two economic powerhouses.

The news has sent shockwaves through the market, particularly affecting Chinese companies with US listings. NetEase is not alone in its tumble, as other major Chinese tech and e-commerce firms also faced significant pressure. Alibaba fell 9%, while JD.com and PDD Holdings dropped 8%. The broader impact was evident in China-focused ETFs, with the KraneShares CSI China Internet ETF down 7.7% and the Direxion China CSI Daily Bull 2X plummeting nearly 18%. As investors grapple with the potential implications of these new trade measures, the market remains uncertain about the future of US-China trade relations and their impact on Chinese technology companies operating in a global market.