Nvidia shares drop over 4% ahead of US stock market open as China retaliates with additional 34% tariff

Chipmaking giant Nvidia Corp's shares dropped more than 4 per cent ahead of the US stock market open on Friday, April 4, as China announced their retaliation move by imposing 34 per cent additional tariffs on all imports from the Western nation.

Nvidia shares dropped 6.2 per cent at $95.80 at 7:30 am (EDT) and were trading nearly 4 per cent lower at around $97 at 8:05 am (EDT) in the pre-market session, ahead of the US stock market open on Friday, April 4, according to data collected from Marketwatch.

The US-based semiconductor chipmaking firm's shares closed 7.8 per cent lower at $101.80 after Thursday's stock market session, compared to $110.42 at the previous market close.

Nvidia's stock was trading lower on Friday, due to the company's high exposure in manufacturing operations in China. Along with Nvidia, Apple Inc.'s stock was also down 3.8 per cent in the pre-market session on Friday, at $195.43 compared to $203.19 at the previous US market close.

China Tariffs

China on Friday, April 4, announced that the nation will impose an additional 34 per cent tariff on all goods imported from the United States as a counter-move after US President Donald Trump's reciprocal tariffs.

“The purpose of the Chinese government's implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfill international obligations such as non-proliferation,” said the Commerce Ministry, reported the news agency Reuters.

The tariffs on imports from the United States will be effective from April 10, 2025, reported the news agency on Friday.

US Markets

The Dow Jones Industrial Average (DJIA) futures were down over 1,500 points on Friday, April 4, as China announced its tariff retaliation move against the United States.

As of 5:00 pm (IST) on April 4, the Dow futures were trading more than 1,500 points lower, at a little over 39,000 points, as investor concerns rose about the international tariff war between the United States and other nations.

According to a Reuters report, the S&P 500 futures contract were down nearly 3 per cent and Nasdaq futures were down 2.6 per cent ahead of the US markets open on Friday, April 4.

The Dow Jones Industrial Average (DJIA) closed 3.98 per cent lower at 40,545.93 points, compared to 42,225.32 points at the previous market close. The S&P 500 index closed 4.84 per cent lower at 5,396.52 points, compared to 5,670.97 points at Thursday's Wall Street close.

The Nasdaq in New York closed 5.97 per cent lower at 16,550.61 points, compared to 17,601.05 points at Thursday's Wall Street close.