- BABA sinks below $106 on Monday, down more than 10%.
- Dow Jones sinks over 2%.
- Asian stock plunge on trade war triggered by Trump tariffs.
- Trump suggests he may add additional 50% tariff to Chinese goods.
Alibaba (BABA) stock plunged 10% just before noon on Monday after US President Donald Trump threatened Xi Jinping’s China with an additional 50% hike of the existing US tariffs.
In a post on his Truth Social platform, Trump wrote, “if China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL tariffs on China of 50%, effective April 9th.”
China hit US imports with an additional 34% tariff last Friday following the Trump administration’s policy of adding a 34% tariff to its existing 20% tariff of Chinese goods.
Trump Truth Social post for April 7, 2025
According to the Cato Institute think tank in Washington, some Chinese goods could see tariff rates near 130% if Trump follows through on his rhetoric. As it stands, the US currently has a minimum 54% tariff on Chinese goods, although certain sectors like pharmaceuticals and semiconductors have been exempted.
Trump also said he would terminate any trade meetings that China has requested if China’s 34% tariff on US goods goes into effect.
The Dow Jones Industrial Average (DJIA) has lost 2% by noon on Monday, while the NASDAQ Composite and S&P 500 are both down around 1.5%. Several Asian stock markets triggered circuit breaker stops earlier on Monday due to intense sell-offs. Those include the South Korean and Taiwan stock markets.
Alibaba stock chart
Alibaba stock blasted through support at $120 on Monday. The next stop is $96, a level it hasn’t seen since late January. The Relative Strength Index (RSI) has sunk to 26 for the first time since December 2023.
The next support comes at $80, where BABA found support recently in mid-January. That was before positive signs emerged from the Chinese government and renewed interest in Alibaba’s various Qwen AI models pushed the share price above $145 this spring.
BABA daily stock chart
