The U.S.-China trade war has entered a dangerous new phase, sparking global financial turmoil and threatening to derail economic growth. Over the weekend, the United States launched sweeping new tariffs, prompting immediate retaliation from China and setting the stage for a volatile market opening on Monday.

Here is an in-depth look at the latest developments and which stocks are expected to suffer the most.

U.S.-China Trade War Heats Up

On Saturday, 5 April 2025, the United States implemented a 10% baseline tariff on all foreign goods. In a more targeted move, it will hike tariffs against 57 nations starting 9 April, with Chinese goods facing an overall 54% import duty.

China responded decisively:

• 34% Retaliatory Tariff: China will impose steep levies on all U.S. imports from 10 April.
• Rare Earth Export Restrictions: China restricted exports of rare earth minerals essential for U.S. high-tech industries.
• Export Control List Expansion: China blacklisted 16 additional U.S. entities, further straining bilateral trade ties.

These tit-for-tat measures have sent shockwaves through the financial markets, with nearly $5 trillion in global equity value at risk. The escalation in the U.S.-China trade war is likely to dominate headlines and market sentiment throughout the coming week.

Stocks Expected to Drop Sharply on Monday

As tensions rise, several sectors and companies are particularly vulnerable to the fallout from the U.S.-China trade war.

Technology Sector

Apple Inc. (AAPL):
Apple’s reliance on Chinese manufacturing makes it a prime casualty of the U.S.-China trade war. Its stock has already fallen 15.9% over the past two days, with further losses expected as tariffs drive up costs and weaken Chinese demand.

Nvidia Corporation (NVDA):
Nvidia, heavily exposed to Chinese supply chains and customers, has seen a 7% stock pullback. Supply disruptions and weaker Chinese consumer demand could pressure the stock further.

Automotive Sector

General Motors (GM) and Ford (F):
Both GM and Ford are vulnerable to the 25% tariffs on auto parts. Analysts warn of significant profit reductions, with GM facing potential annual losses of $14 billion and Ford risking $10 billion. Their stocks are poised to extend recent declines.

Tesla Inc. (TSLA):
Although Tesla manufactures domestically, the broader market sell-off and its supply chain exposure have already knocked its shares down by 9%. More volatility is likely if the U.S.-China trade war intensifies.

Retail Sector

Amazon.com Inc. (AMZN):
Amazon depends heavily on imported goods, many of which now face steep tariffs. Higher operating costs and weaker consumer demand could drag its stock down further after its recent losses.

Nike Inc. (NKE):
Nike sources much of its inventory from Asia, and the new tariffs threaten to drive up costs. Its shares have already declined 12% and could fall further.

Financial Sector

Major U.S. Banks (JPMorgan Chase, Citigroup, Bank of America):
Financial institutions are highly sensitive to economic growth prospects. With the U.S.-China trade war worsening, concerns about a global slowdown are weighing heavily on bank stocks, which have fallen between 6% and 11%.

Steel Industry

U.S. Steel Companies (Nucor, U.S. Steel):
Despite initial hopes for protectionism, the trade war has sparked fears of reduced industrial demand. Steel stocks have tumbled as a result and are likely to remain under pressure.

Global Market Overview

• The Nasdaq Composite officially entered bear market territory, down more than 20%.
• The Dow Jones Industrial Average and S&P 500 are poised for steep declines at the Monday open.
• European and Asian indices are similarly set for heavy losses as global investors flee to safer assets.

The escalating U.S.-China trade war is driving a global stock market sell-off that may accelerate if neither side backs down.

Conclusion

The deepening U.S.-China trade war has sent shockwaves across financial markets. Technology, automotive, retail, financials, and steel sectors are bearing the brunt of the fallout, with companies like Apple, Nvidia, GM, Ford, Amazon, and Nike among the most at risk.

Investors should prepare for increased volatility and potentially extended downturns. Defensive sectors, reduced exposure to China, and diversified portfolios could offer some protection in this turbulent environment.