Alibaba stock and other U.S.-listed shares of China tech stocks tumbled further Monday, after President Donald Trump threatened an additional 50% tariff on China if the country's leadership does not rescind its own retaliatory tariffs.
Trump's comments — made through a post on Truth Social — further escalate a trade war that has roiled global markets in both countries. China late last week vowed to implement a 34% retaliatory tariff on all goods imported from the U.S. starting April 10. The move came in response to Trump slapping a 34% tariff hike on Chinese goods, bringing total levies against China-made products to 54%.
In addition to the new threat Monday, Trump wrote that "all talks with China concerning their requested meetings with us will be terminated."
The comments pushed China tech stocks lower in early afternoon trading.
Alibaba stock is down 8% at 106.23 in recent action on the stock market today. The stock slumped further below its 50-day moving average. That marks the e-commerce and cloud-computing giant's lowest point since early February.
Meanwhile, U.S.-listed shares of Chinese internet search giant Baidu were down 2.5%. Temu parent company PDD Holdings' American depositary receipts were down 3.5%. Alibaba e-commerce rival JD.com was off nearly 6%. China tech giant Tencent's over-the-counter U.S. trades were down nearly 8%.
Meanwhile, China also restricted exports of certain rare-earth minerals, among other measures aimed at retaliation.
"Beijing appears preparing for negotiations by putting more bargaining chips on the table regardless of whether Trump will order more levies," Evercore ISI's China research team wrote in a client note over the weekend.
Policymakers in China are discussing accelerating stimulus plans in response to the tariffs, according to a Bloomberg report.
Alibaba Stock: Slide Dents 2025 Rally
The escalating trade war stung global markets. The Hong Kong's Hang Seng Index fell 13% Monday, its largest daily percentage drop since the 1997 Asian financial crisis, according to Dow Jones Market Data. Hong Kong trading was closed Friday.
Hong Kong-listed shares of Alibaba fell 18% Monday.
China tech stocks started the year strong, as the sudden emergence of DeepSeek in China helped ignite excitement among investors. Stocks were also helped by views that consumer spending was recovering amid government stimulus efforts.
But recent trade war concerns are biting into the rally for China tech stocks. U.S.-listed Alibaba stock entered Monday down 28% from a three-year high of 148.43 that the stock hit in mid-March. The stock was still ahead more than 35% so far year-to-date however.
