Gaotu Techedu Inc. (GOTU) saw its stock plummet by 5.14% during Friday's trading session, as U.S.-listed shares of Chinese companies took a hit following President Donald Trump's threat of a "massive" increase in U.S. tariffs on Chinese imports. The online education firm's decline was part of a broader selloff affecting various Chinese stocks listed on U.S. exchanges.

The announcement sent shockwaves through the market, impacting companies across different sectors. E-commerce giants such as Alibaba Group Holding, JD.com Inc, and PDD Holdings experienced significant drops, falling between 5.9% and 6.9%. Other affected sectors included gaming, with Bilibili Inc sliding 7.8% and NetEase Inc down 2.2%, while search engine giant Baidu Inc shed 7%.

In the education sector, Gaotu Techedu's peers also suffered losses, with TAL Education Group and New Oriental Education & Technology Group Inc declining between 3% and 4.8%. The widespread impact of the tariff threat extended to various other industries, including electric vehicle manufacturers, music streaming services, and online brokerages, highlighting the vulnerability of U.S.-listed Chinese firms to geopolitical tensions and trade disputes between the two nations.