China stocks took a beating Thursday amid escalating trade war threats from the Trump administration, which is now eyeing 25% tariffs on $200 billion worth of Chinese goods.

The Shanghai Composite Index and Hang Seng Index tumbled 2% and 2.2%, respectively, on Thursday. In fact, most global markets were lower. China stock funds have been under pressure most of this year as the U.S. and China have ratcheted up tariff talk.