Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com -- Shares of major U.S. retailers with significant supply chains in China dropped on Friday after U.S. President Donald Trump suggested he might impose additional tariffs on Chinese imports.
Best Buy and American Eagle experienced the steepest declines, with shares falling over 5%. Abercrombie & Fitch shares dropped about 4%, while Ralph Lauren, Lululemon, Nike, and Gap all declined around 2%. Toymakers Mattel and Hasbro also saw their stocks fall by nearly 4%.
U.S.-listed Chinese companies faced even sharper selloffs following Trump’s comments. Electric vehicle maker NIO led the decline with a 7% drop, followed by Xpeng, which fell 6%. Baidu shares decreased 5.5%, while JD.com dropped 4.6%. Other notable declines included PDD Holdings down 2.8%, Li Auto down 2%, and Alibaba down 5.5%. NetEase experienced a more modest 1% decline.
The market reaction followed Trump’s lengthy statement on Truth Social, where he accused China of becoming "very hostile" and attempting to impose export controls on rare earth elements and other products. In his post, Trump claimed China was trying to "clog the Markets" and make business difficult for countries worldwide.
Trump stated he had planned to meet with Chinese President Xi at the upcoming APEC summit in South Korea but now sees "no reason to do so." He threatened "a massive increase of Tariffs on Chinese products coming into the United States" and mentioned other potential countermeasures under consideration.
The president also suggested the timing of China’s actions coincided with peace developments in the Middle East, questioning whether this was coincidental