NIO Inc ( NIO ) shares are trading lower Monday morning alongside several Chinese names as trade tensions rise between the U.S. and China.

What Happened: Last week, U.S. President Donald Trump announced sweeping reciprocal tariffs on several countries, including 34% tariffs on China.

China responded with 34% tariffs on U.S. imports, export curbs on some rare earths and restrictions on several U.S. organizations, per Reuters.

Trump’s 34% tariffs on China come after the President doubled tariffs on China from 10% to 20% earlier this year. Total tariffs on China now sit around 54%.

“The U.S move is not in line with international trade rules, seriously undermines China’s legitimate and lawful rights and interests, and is a typical unilateral bullying practice,” China’s finance ministry reportedly said.

Check This Out: ‘A Beautiful Word’: Why Trump Insists On Tariffs As Essential In His Bid To Save American Manufacturing

The response from China has deepened the trade war between the world’s two largest economies. Trump on Friday took a shot at China in a Truth Social post.

Trump said, “China played it wrong, they panicked – the one thing they cannot afford to do!”

Nio on Monday announced that it completed an offering announced at the end of March. The company said it offered and sold 136.8 million shares for HK$4.03 billion ($520 million) to non-U.S. persons in offshore transactions.

Reuters also reported Monday morning that Chinese battery giant CATL is in talks to acquire a controlling stake in Nio’s power unit, which includes more than 3,000 battery swapping stations in China.

Nio announced last week that it delivered 15,039 vehicles in March, up 26.7% year-over-year. Total March deliveries consisted of 10,219 vehicles from the company's premium Nio brand and 4,820 vehicles from the company's ONVO brand.

NIO Price Action: Nio shares were down 6.65% at $3.23 at the time of publication Monday, according to Benzinga Pro.