Following China’s announcement of retaliatory tariffs, global financial markets experienced significant volatility. The Dow Jones Industrial Average dropped over 1,100 points, exacerbating losses from the previous day. Stocks with substantial exposure to the Chinese market, including tech giants Alibaba, XPeng, and Baidu, saw significant declines. Tesla shares also dropped more than 5% due to its heavy reliance on the Chinese market. The escalating trade tensions have reignited fears of a protracted trade war, leading investors to hastily offload affected equities. President Trump dismissed China’s move as a sign of “panic” on his social media platform. The escalating dispute is adversely affecting companies that previously sought to mitigate tariff impacts, highlighting growing instability in global trade.