Shares of New Oriental Education & Technology Group (EDU) plummeted 9.17% in intraday trading on Friday, as the escalating trade tensions between China and the United States sent shockwaves through Chinese stocks listed on US exchanges. The significant drop comes in the wake of China's announcement of sweeping retaliatory measures against US goods and technologies.

The Chinese government declared it would impose additional tariffs of 34% on all US goods starting from April 10, in response to recent tariffs implemented by the US administration. This move follows President Donald Trump's announcement of a 34% tariff on Chinese imports, bringing the total new levies to 54%. Furthermore, Beijing introduced export controls on several rare earth elements crucial for various high-tech industries, potentially disrupting supply chains for many US companies.

While New Oriental Education was not specifically targeted in the announcements, the company, like many other Chinese ADRs, is facing collateral damage from the escalating trade war. The broader market sentiment has turned decidedly negative, with Chinese ADRs experiencing significant sell-offs across the board. Other major Chinese companies listed in the US, such as Alibaba, JD.com, and Baidu, also saw their stock prices plunge, with some falling by as much as 10%. As the situation continues to develop, investors are likely reassessing their positions in Chinese stocks amid fears of further economic retaliation and regulatory scrutiny from both sides.