The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) closed up 1.7% at $60.85 on February 3, 2025, as new U.S. tariffs on Chinese imports fueled concerns over a potential trade war. President Donald Trump's announcement of a 10% tariff on Chinese goods has intensified fears of economic disruption, leading to a risk-off sentiment in global markets. The tariffs are expected to have a modest direct impact on China's economy, but the broader implications for global trade and economic growth are causing concern among investors. The Chinese government has indicated plans to file a lawsuit with the World Trade Organization in response, adding to the uncertainty. Meanwhile, China's Purchasing Managers' Index (PMI) showed a contraction in factory activity for January, further exacerbating concerns about the country's economic health. Analysts are also noting that Chinese policymakers face challenges in maintaining economic stability amid these external pressures.