General Motors (GM) stock is facing a significant setback in pre-market trading, plummeting 5.27% following China's announcement of sweeping tariffs on U.S. goods. The move comes as part of an escalating global trade war, which has sent shockwaves through the automotive industry and broader financial markets.

China revealed plans to impose additional tariffs of 34% on U.S. goods, marking a severe escalation in the ongoing trade dispute with the United States. This retaliatory measure is expected to have a substantial impact on U.S. automakers, with General Motors likely to face challenges in one of its key markets. The Chinese government also announced the addition of several U.S. entities to an export control list and classified others as "unreliable" entities, further complicating the trade landscape.

The auto industry, particularly vulnerable to trade tensions, is bracing for potential long-term consequences. As U.S. auto stocks tumble in pre-market trading, investors are weighing the implications of reduced access to the Chinese market and increased costs for American-made vehicles. The situation has contributed to growing fears of a global recession, with investment bank JP Morgan now estimating a 60% chance of the global economy entering a recession by year-end, up from its previous 40% estimate.