South Korean shares plunged about seven percent over the past two weeks after United States President Donald Trump announced the plan to impose new tariffs on Chinese goods.

According to the Korea Exchange on Sunday, the benchmark Korea Composite Stock Price Index (KOSPI) closed at two-thousand-55-point-80 on Friday, down seven-point-09 percent from May 3; two days before Trump tweeted that Washington will raise tariffs on 200 billion dollars worth of Chinese goods to 25 percent from the previous ten percent.

Over the last two weeks, electric and electronics firms suffered the biggest losses of ten-point-25 percent, followed by carmakers and insurance firms, which dropped nine-point-63 percent and eight-point-94 percent, respectively.

Analysts said the sharp drop is attributed to investors' concerns that the deepening tension between the United States and China could have significant impact on the South Korean economy, which heavily relies on trade with the two nations.