NetEase (NTES) shares plummeted 7.13% in trading on Friday, as investors reacted to China's announcement of new retaliatory tariffs on US goods. The Chinese gaming giant's stock decline comes amid a broader selloff in Chinese ADRs listed on US exchanges, triggered by escalating trade tensions between the world's two largest economies.

The sharp drop in NetEase's stock price follows China's Finance Ministry's declaration of 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 intensifying the trade dispute.

The news has sent shockwaves through the market, particularly affecting Chinese companies with US listings. Other major Chinese tech and e-commerce firms also faced significant pressure, with Alibaba falling 8.7%, JD.com slipping 8.8%, and PDD Holdings down 8.2%. The broader impact was evident as China-focused ETFs such as the KraneShares CSI China Internet ETF tumbled 7.7%. As the situation remains fluid, market participants will be closely monitoring further developments and potential retaliatory actions from both sides, which could continue to impact NetEase and other Chinese stocks trading on US exchanges.