Alibaba Inc. (NYSE:BABA) shares are trading lower Friday after China announced a 34% tariff on all goods imported from the U.S., effective April 10.
What To Know: China's finance ministry said Trump’s recent tariffs violate international trade rules and demanded the tariffs be canceled immediately. It called the U.S. measures unilateral and harmful to both countries' economies and global supply chains.
The announcement triggered a selloff in Chinese stocks trading in the U.S., with Alibaba among the hardest hit. The company is sensitive to cross-border tensions due to its international business exposure.
China imposed export restrictions on 16 U.S. companies, revoked export licenses for six others, and added 11 firms to its unreliable entities list, including drone maker Skydio. It also announced tighter controls on rare earth mineral exports.
The escalation follows comments from President Donald Trump, who said tariffs give the U.S. leverage and hinted they could be used in negotiations over TikTok and a BlackRock deal involving Chinese ports. Trump suggested China would respond to pressure to secure approvals on those issues.
Price Action: Alibaba shares were down 11.6% at $114.34 at the time of writing, according to Benzinga Pro.
Read Next:
- Nasdaq 100 Enters Bear Market, Dow In Correction Territory, Traders Await Fed Chair Powell’s Remarks
Image Via Shutterstock.
