US Listed Chinese Stocks Drop After Trump Renews Trade Tensions

US-listed Chinese stocks Alibaba Group Holding BABA, PDD Holdings Inc PDD, and Baidu, Inc BIDU declined on Friday after U.S. President Donald Trump accused China of violating an agreement with the U.S. to ease tariffs in his Truth Social post.

However, President Trump did not mention specifically how China violated the deal.

Chinese electric vehicle companies, including NIO Inc (NYSE: NIO) and XPeng Inc (NYSE: XPEV), also traded lower on Friday.

Also Read: Alibaba And Baidu Turn To Chinese AI Chips As US Sanctions Squeeze Nvidia Supply

On May 12, Beijing and Washington had agreed to lower tariffs on each other's products, temporarily offering relief to the stock market. The deal reduced U.S. levies of 145% on most Chinese imports to 30%, while China's 125% duties on U.S. goods will drop to 10% for 90 days.

On Wednesday, a federal court had invalidated global tariffs enacted by Trump under the International Emergency Economic Powers Act.

A three-judge panel, with appointees from the Reagan, Obama, and Trump eras, ruled that the IEEPA doesn't give the president unlimited power to impose tariffs.

However, the order was appealed, and on Thursday, the federal appeals court in Washington reinstated the tariffs on foreign imports.

"The request for an immediate administrative stay is granted to the extent that the judgments and the permanent injunctions entered by the Court of International Trade in these cases are temporarily stayed until further notice while this court considers the motions papers," the order stated,

Price Actions: BABA stock is down 2.88% at $113.81 at last check Friday. PDD is down 1.34%, BIDU is down 2.41.

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