Alibaba's Joseph Tsai Says 'Everyone Is Concerned About Tariffs,' As He Expects Levies On Chinese EVs

The chairperson of Alibaba Group Holding ADR BABA, Joseph Tsai acknowledged that everyone around the world is concerned about the ongoing tariff battle between the economic powerhouses of the world.

What Happened: While speaking at CNBC’s event Converge Live, in Singapore, Tsai responded to a question on tariff imposition by the Donald Trump administration and said that “Everyone is concerned about tariffs.”

He highlighted that the Chinese multinational technology company sells $50 billion worth of American products on its platform to Chinese consumers every year. On the other hand, about $30 billion worth of European products are also sold annually.

"I think the Trump administration will want to have more American companies doing business in China and making money there," he said, adding that it was ultimately between the global leaders to meet and decide on the future course of these protectionist policies.

Furthermore, he suggested if Trump’s wider tariff approach was just a bargaining chip, there was still a likelihood of seeing specific tariffs on Chinese electric vehicles. Tsai added that it could be a move to safeguard the American auto industry from potential competition.

Why It Matters: On Tuesday afternoon, President Trump unexpectedly reversed his decision to double tariffs on Canadian steel and aluminum to 50%, just hours after announcing the increase. The abrupt policy change, which rattled financial markets, followed Canada’s withdrawal of plans for a 25% surcharge on electricity.

Additionally, as Trump’s tariffs on steel and aluminum imports go into effect, the European Union announced on Wednesday that it will retaliate by imposing levies of 26 billion euros or $28.33 billion on U.S. goods beginning in April.

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.73% to $560.00, and the QQQ also advanced 0.83% to $475.51, according to Benzinga Pro data.

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