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**Trumps Tariff Increase Strategy Causes a Decrease in Chinese ETFs and Equities**
*Published February 28, 2025, 12:08 PM ET*
**Main Points:**
* Chinese ETFs and U.S.-traded Chinese equities declined Friday subsequent to President Trump’s declaration of intentions to double tariffs on Chinese merchandise.
* Trump’s proposition encompasses an extra 10% tariff on Chinese items, supplementing the 10% tax enacted at the beginning of February.
* The iShares MSCI China ETF (MCHI) was negatively impacted, declining approximately 2%.
President Trump’s declaration of intentions to double existing tariffs on Chinese merchandise produced significant repercussions throughout the market Friday, resulting in a sharp decline for China-focused ETFs and U.S.-listed Chinese equities.
The suggested tariff increase, disclosed Thursday, would impose an additional 10% duty on products originating from China, augmenting the 10% tariff already put into effect at the beginning of February. Trump also alluded to tariffs targeting Canadian and Mexican merchandise, scheduled to become effective on March 4.
The iShares MSCI China ETF (MCHI) and iShares China Large-Cap ETF (FXI) both encountered intraday decreases surpassing 2% on Friday.
Shares of Chinese conglomerates such as Alibaba Group Holding (BABA) and online retailer JD.com (JD) also encountered losses exceeding 2%, while PDD Holdings (PDD), the parent company of Temu, observed its stock price decrease by more than 4%.
Chinese electric vehicle manufacturers Nio (NIO) and Li Auto (LI) were also affected, with both equities experiencing a fall of around 3%.
In spite of the recent decline, Chinese equities have generally surpassed the S\&P 500 this year. The MSCI China ETF has increased by 14%, while the U.S. benchmark index has remained relatively unchanged year-to-date. Toncoin (TON) Value Forecast for March 26th
