China ETFs, Stocks Slump on Trump Plan to Double Tariffs

KEY TAKEAWAYS

China-focused
exchange-traded funds (ETFs)
and stocks of Chinese companies listed on U.S. exchanges fell Friday, after U.S. President Donald Trump said he was
planning to double
the existing tariff on goods from China.

On Thursday, Trump said that he would put an additional 10% tariff on products from China, adding to a 10% tariff he already imposed in early February. He also said tariffs against products from Canada and Mexico will go into effect March 4.

The iShares MSCI China ETF (

MCHI

) and the iShares China Large-Cap ETF (

FXI

) both fell more than 2% in intraday trading Friday.

U.S. traded shares of Chinese conglomerate Alibaba Group Holding (

BABA

) and online marketplace JD.com (

JD

) were also down more than 2% while those of Temu parent PDD Holdings (

PDD

) were more than 4% lower.

Chinese electric vehicle (EV) makers Nio (

NIO

) and Li Auto (

LI

) also lost ground, declining around 3%.

Still, Chinese shares have outperformed the S&P 500 this year, with the MSCI China ETF gaining 14% while the U.S. benchmark index is roughly flat.

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