Friday resulted in a turmoil in the worldwide crypto market as the U.S. President Donald Trump threatened with the announcement of an outright 50% tariff. In Donald Trump’s recent X post, he has declared the implementation of a huge 50% tariff on the products from European Union, including a twenty-five percent tax on iPhones developed overseas. This development has shaken the whole crypto industry, impacting the top crypto assets like Bitcoin ($BTC) and others.
Trump’s Latest 50% Tariff Threat for EU Goods Pushes Bitcoin and Ethereum Significantly Downward
The flagship cryptocurrency Bitcoin ($BTC) has plunged from yesterday’s $111K to $108K, denoting a considerable dip. The tariff threat has also affected the price of the top altcoin Ethereum ($ETH). In this respect, $ETH has slumped by 4% while it is endeavoring to sustain the crucial support level at up to $2,500.
In addition to this, the trading volumes have also experienced a notable dip. Particularly, more than $550M in terms of positions over the past 24 hours. These liquidations account for over $395M in longs. Apart from that, in Trump’s announcement, he criticized the trade practices of the European Union. He also asserted that the negotiations in this respect have led to nothing.
Tariffs to Be Implemented on June 1st, 2025
In this respect, he also referred to a $250B per-annum trade deficit. Hence, he announced the imposition of the tariffs starting from the 1st of June this year. This announcement has ignited fears of escalation in trade tensions across the globe.
The new reports point out that the tariff threat takes place amid the recent association of Trump with the controversial gala dinner concerning the $TRUMP token. This event, reportedly attended by elite crypto figures, got wide criticism combined with the allegations of likely interest conflicts. After the gala, the $TRUMP token jumped to $16 before plunging back to just $13.81.
