Gaotu Techedu Inc. (GOTU) saw its stock price plummet by 5.14% in Friday's trading session, as U.S.-listed shares of Chinese companies faced a sharp sell-off. The decline came in response to President Donald Trump's threat of a "massive" increase in U.S. tariffs on Chinese imports, sparking fears of escalating trade tensions between the world's two largest economies.

The announcement of potential tariff hikes sent shockwaves through the market, particularly affecting Chinese firms listed on U.S. exchanges. Investors reacted swiftly to the news, leading to a broad-based sell-off in Chinese stocks as concerns mounted over the potential impact on their businesses and the overall Chinese economy.

Gaotu Techedu, an online education company, was not alone in its decline. Other Chinese education firms such as TAL Education Group and New Oriental Education & Technology Group also experienced drops ranging from 3% to 4.8%. The sell-off extended beyond the education sector, with major Chinese tech giants like Alibaba, JD.com, and Baidu seeing their shares fall between 5.9% and 7%. The widespread nature of the decline underscores the significant impact of geopolitical tensions on investor sentiment towards Chinese equities.