Stocks Tumble As Trump Mulls 'Massive' China Tariffs: What's Moving Markets Friday?

Author: Piero Cingari | October 10, 2025 11:47am

The stock market stumbled Friday after President Donald Trump threatened a sweeping increase in tariffs on Chinese imports, sending equity indices and risk sentiment sharply lower.

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"Some very strange things are happening in China! They are becoming very hostile and sending letters to countries throughout the world that they want to impose export controls on every element of production involving rare earths," Trump wrote on Truth Social.

"I was to meet President Xi in two weeks at APEC in South Korea, but now there seems to be no reason to do so."

Trump said he would "financially counter" Beijing's move, adding that for every element China has monopolized, "we have two."

Crucially for markets, the president hinted that a "massive increase of tariffs" on Chinese goods entering the U.S. was among several measures under consideration.

The announcement rattled global markets. By 12:25 p.m. ET, the Nasdaq 100 fell nearly 2% to below 24,600 points, while the Dow Jones Industrial Average slipped about 400 points, or 1%, to below 46,000.

Advanced Micro Devices (NASDAQ:AMD) led tech decliners, dropping 7% after a spectacular week that had put it on track for its best weekly performance since 2016.

Chinese stocks were hit particularly hard, with JD.com Inc. (NASDAQ:JD), Alibaba Group Holding Ltd. (NYSE:BABA), Baidu Inc. (NASDAQ:BIDU) and PDD Holdings Inc. (NASDAQ:PDD) each falling roughly 4% or more.

The iShares China Large-Cap ETF (NYSE:FXI) sank 3.2%.

The U.S. dollar weakened, while gold prices rebounded above $4,000 per ounce as investors sought safety. Bitcoin (CRYPTO: BTC) also came under pressure, falling 1.6% to trade below $120,000.

Friday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	Chg %
• Dow Jones	45,957.81	-0.9%
• S&P 500	6,650.37	-1.3%
• Russell 2000	2,427.07	-1.7%
• Nasdaq 100	24,642.87	-1.8%

S&P 500’s Top 5 Gainers On Friday

Name	Chg %
PepsiCo, Inc. (NASDAQ:PEP)	+3.53%
Philip Morris International Inc. (NYSE:PM)	+2.37%
Verisk Analytics, Inc. (NASDAQ:VRSK)	+2.30%
CVS Health Corporation (NYSE:CVS)	+2.08%
Erie Indemnity Company (NASDAQ:ERIE)	+2.08%

S&P 500’s Top 5 Losers On Friday

Name	Chg %
The Mosaic Company (NYSE:MOS)	-7.57%
Block, Inc. (NYSE:XYZ)	-6.70%
Advanced Micro Devices, Inc.	-6.70%
Synopsys, Inc. (NASDAQ:SNPS)	-5.74%
Robinhood Markets, Inc. (NASDAQ:HOOD)	-5.47%

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Photo: Shutterstock

Posted In: $BTC AMD BABA BIDU CVS ERIE FXI HOOD JD MOS PDD PEP PM SNPS VRSK XYZ