Alibaba Group Holding Ltd. ( BABA ) shares have plummeted 32.50% since mid-March as escalating trade tensions between the U.S. and China threaten to derail the e-commerce giant’s international business model.

What Happened: Speaking at CNBC’s Converge Live event in Singapore, Alibaba ( BABA ) Chairman Joe Tsai addressed the company’s strategic direction while acknowledging concerns about the tariff dispute.

“Obviously everybody is concerned about tariffs because if you’re involved in the business of global trade… we actually are involved in two-way trade,” Tsai said, noting that Alibaba ( BABA ) annually sells “$50 billion worth of American products to Chinese consumers and $30 billion worth of European products.”

The sell-off intensified Tuesday with BABA shares falling over 6.24% after Treasury Secretary Scott Bessent characterized China’s tariff threats as a “strategic mistake.” President Donald Trump has threatened to impose an additional 50% tariff on Chinese imports if Beijing doesn’t roll back retaliatory duties.

By Tuesday evening, S&P 500 futures had fallen 1.76% as markets braced for Trump’s 104% tariff on Chinese imports set to take effect Wednesday.

See Also: Elon Musk Made Unsuccessful Appeals To Trump To Reverse New Tariffs As Tesla Likely To Take A Hit: Report

Why It Matters: Tsai, who returned as Alibaba’s chairman in May 2023, has been working to streamline the company amid intense competition in China’s e-commerce sector. “We have to exist as a fast-moving startup… large companies move very slow and it’s because the decision structure is too complicated,” he explained.

The e-commerce giant is also betting heavily on artificial intelligence, with Tsai announcing plans to invest $50 billion in computing infrastructure and AI over the next three years.

Despite current market turbulence, Tsai maintained an optimistic outlook on eventual resolution of trade disputes: “I’m pretty half glass full… eventually the tariffs being a negotiating tool maybe, but at some point things will sort of get better.”

Since reaching a high of $147.22 on Mar. 17, Alibaba ( BABA ) stock has declined to $99.37, representing a 32.50% loss amid continuing concerns about protracted trade conflicts.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.