- Trump’s tariff threat on EU impacts crypto and equity markets.
- Bitcoin now trades near $109,000 post-announcement.
- Panic selling leads to over $450 million in crypto liquidations.
Trump’s tariff announcement is causing major disruption across crypto markets, igniting fears of trade wars and unsettling investors globally.
Market Response to Trump’s Tariff Announcement
In an unexpected move, President Donald Trump declared a 50% tariff on goods from the European Union. He communicated this via Truth Social, citing stalled negotiations. This has immediately affected global markets, including cryptocurrencies.
Pressure on U.S. Companies
Trump’s demands also targeted Apple, urging CEO Tim Cook to move manufacturing to the U.S. Trump warned of an added 25% tariff on iPhones otherwise. Markets have swiftly responded to this announcement. “The [European] Union… has been very difficult to deal with. Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the EU, starting on June 1.” – Trump via Truth Social
Impact on Cryptocurrencies
The implications include a sharp correction across major crypto assets, with Bitcoin dropping to $109,000 from $111,000. U.S. stock indexes and major tech firms like Apple have also witnessed declines.
Read more on Bitcoin’s response.
Historical Context of Trade Wars
These tariffs rekindle trade war fears, reflecting similar past market reactions during U.S.-China tensions. Widespread selling led to significant outflows from crypto markets, with BTC shedding $2,500 in value swiftly.
Long-term Market Implications
Market trends suggest renewed caution, with long-term impacts depending on further diplomatic outcomes between the U.S. and EU. Investors may look toward historical trade negotiations for potential developments.
