Chinese Stocks Tumble After Trump’s Tariff Threat Sparks Market Anxiety

U.S.-listed Chinese equities faced sharp declines Friday as former President Donald Trump's threat of "massive tariffs" reignited trade war fears. NIO and XPeng led the selloff with 7% and 6% drops respectively, while Alibaba and JD.com shed over 5% as tech shares bore the brunt of the market's reaction.

The proposed tariffs targeting China's rare earth exports triggered broader risk-off sentiment. Retailers with Chinese supply chains including Best Buy and Nike saw 2-5% declines, reflecting concerns about potential supply chain disruptions.

Market volatility spiked following Trump's Truth Social post accusing China of economic hostility. The rhetoric echoes 2018-2019 trade war patterns that previously roiled global markets, though cryptocurrency markets remained stable during the equity selloff.