Gaotu Techedu Inc. (NYSE: GOTU) experienced a significant downturn in the intraday trading session, with its stock price plummeting 5.38%. This sharp decline comes amidst a broader selloff in Chinese ADRs and escalating trade tensions between the United States and China.

The drop in Gaotu Techedu's stock price appears to be part of a larger trend affecting Chinese companies listed on U.S. exchanges. According to market reports, several Chinese ADRs saw notable declines, with some major players like PDD Holdings falling by 5%, and others such as Alibaba, Baidu, and Nio dropping around 2%. This widespread downturn suggests that macroeconomic factors and geopolitical tensions are playing a significant role in the market's behavior.

The primary catalyst for this market turbulence seems to be China's announcement of additional tariffs on U.S. goods. The Chinese finance ministry stated that it would impose levies of 84% on certain U.S. products starting April 10, up from the previously announced 34%. This escalation in the trade war has sparked concerns among investors about the potential impact on Chinese companies, particularly those with significant exposure to international markets or reliance on cross-border trade. While Gaotu Techedu, as an education technology company, may not be directly affected by the tariffs, the overall market sentiment and fears of economic slowdown appear to be weighing heavily on its stock price.