Alibaba, PDD, JD.com fall on Trump’s additional tariff threats

00:00 Speaker A

Wanted to check on another group here, and that’s US listed shares of Chinese companies. They’re under pressure as President Trump is now threatening more tariffs on China. He said this morning on social media that the United States will impose additional tariffs on China of 50%. Now, if you recall, the tariffs on China are already that are set to go into place are already 54%. So that would be a lot of tariffs. I’m, I’m taking a look at the Y5 interactive here. We just showed a few of those China stocks. This is a bigger look here, what we’ve seen. There’s Alibaba, PDD, Netease, JD.com. So you see obviously broad selling. I’m going to take it to the three day look because as we did earlier with Jared, that shows that since the beginning of the sell-off, obviously then you have that additional headline today. Alibaba falling almost 19% in that time.

01:26 Speaker B

None of that is surprising, right? Based on what the headlines are. But, you know, it’s interesting, and I, I think I said this to you once before. I don’t, I don’t buy Chinese stocks. I just think there’s so many other places for me to put my money. But I’m not surprised by what we’re seeing, considering the, the level of rhetoric that’s coming out of the White House towards China. And the fact that China’s pushing back and saying too bad.

02:15 Speaker A

And there’s also been some interesting reporting out of the Wall Street Journal that the two sides, unlike many of the other sides have tried to negotiate. Beijing has tried to sort of go through traditional diplomatic channels. They’ve done it the same way for many years. And it looks like with the Trump administration, that is just not an approach that works. They like a more informal, direct approach.

02:57 Speaker B

But he likes through social, he wants to, he wants to negotiate. He wants to tweet it out.

03:13 Speaker A

Yeah, well.

03:26 Speaker B

You know, but it is a, it is to your point. No, no, no, not at all. And to your point, I actually think that the Chinese stocks, I think they could continue to come under pressure.

03:41 Speaker A

I think it’s going to be happening with the Chinese anytime soon.

04:05 Speaker A

All right.