Bitcoin Dumps As Trump Slaps EU with 50% Tariffs from June 1

US President Donald Trump has reportedly announced a 50% tariff on the European Union, starting on June 1, 2025. This development follows Trump’s Truth Social post that threatened Apple with a 25% tariff on iPhones not manufactured in the US. With these escalating trade tensions, financial markets are facing a downturn, with top cryptocurrencies like Bitcoin bleeding.

Trump’s Trade Tensions Escalate with 50% EU Tariff

“The European Union… has been very difficult to deal with,” said Trump in his latest Truth Social post. In the latest development, President Trump announced his decision to impose a 50% tax on goods imported from the EU. He has also reportedly expressed frustration that negotiations between the US and EU aren’t yielding progress. He wrote, “Our discussions with them are going nowhere!”

Further, recommending the tariff, Donald Trump added,

Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable.

Treasury Secretary Scott Bessent states that Trump will announce more trade deals in a 90-day tariff delay period. Thus, experts and analysts keenly watch for market movements amidst these possible developments.

Trump’s Apple Tariff

Notably, Trump’s EU tariff updates were released just minutes after his post on Truth Social, where he threatened to impose a 25% tariff on Apple unless the company manufactures iPhones in the United States. His Truth Social post read, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.”

Significantly, this move follows Apple’s decision to manufacture iPhones in the newly built plants in India for the US market. During his recent Middle East trip, Trump expressed displeasure on the same with Apple CEO Tim Cook.

How Did Stock and Crypto Markets React?

In response to the escalating pressures, the crypto market experienced a sharp decline to $3.42 trillion, down by 2.58%. Though Bitcoin recently reached a new all-time high of $111k, it dipped to $108k following Trump’s announcements. Other major tokens like Ethereum (ETH) and XRP have also faced notable dips of 1.82% and 2.09%, respectively. While the crypto market initially rose on speculation of a US-UK trade deal, it sharply fell after the deal was announced.

Additionally, European stock markets experienced a significant downturn. Germany’s DAX index dropped by 2.6%, while France’s CAC index fell by 2.8%. London’s FTSE index also declined, albeit more modestly, with a 1.3% loss. This sharp decline reflects investor concerns over Trump’s trade policies and potential tariffs, highlighting the interconnectedness of global markets.

Meanwhile, Marcel Fratzscher, head of the German Institute for Economic Research, slammed the EU Commission and Germany’s approach to trade negotiations with Donald Trump. He asserted,

The strategy of the EU Commission and Germany in the trade conflict with Trump is a total failure. This was a failure you could see coming — Trump sees Europe’s wavering, hesitation and concessions as the weaknesses that they are.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.