Trump's Tariff Moves Shake Chinese Tech Stocks

Chinese and Hong Kong stocks dropped as U.S. President Trump's tariff threats cooled the recent rally in artificial intelligence and chip stocks. Semiconductor shares fell, and Chinese automakers struggled against competition. Despite popular initiatives, tensions between the U.S. and China remain high.

China and Hong Kong stocks slipped on Tuesday, ending a three-day winning streak, as investor excitement around artificial intelligence and chip shares waned due to new tariff threats from U.S. President Donald Trump.

Markets showed uncertainty after semiconductor shares fell nearly 1%, following Trump’s decision to raise tariffs on steel and aluminium imports to 25%. In response, Chinese automakers Xpeng and Geely Auto saw significant declines, each tumbling more than 7%.

Despite the immediate market reactions, analyst Paul Gong of UBS noted that intelligence innovation remains a strong theme, particularly in the auto sector. Meanwhile, Sino-U.S. trade talks have yet to yield progress, although high hopes persist for a future breakthrough.