On October 10, 2025, Alibaba Group Holding Ltd (BABA) shares fell sharply, trading at $157.85, down 9.11% during live trading. The steep decline follows US President Donald Trump's public threat of 'a massive increase of Tariffs on Chinese products,' which reignited fears of a renewed US-China trade war and triggered a broad selloff in Chinese and tech stocks. This policy risk overshadowed recent positive developments for Alibaba, including an NBA China partnership and analyst upgrades from Bernstein and Jefferies, both of which highlighted Alibaba's AI and cloud growth prospects. The market-wide downturn, with the NASDAQ down 2.67% and S&P 500 down 2.1%, further amplified the selloff. The primary driver of BABA's drop is the heightened geopolitical risk and tariff uncertainty, as confirmed by multiple financial news sources.