The proposal to impose a 50% tariff on the European Union by U.S. President Donald Trump has shocked the global trade market, causing the cryptocurrency industry to witness a sharp downward trend and lose nearly $100 billion in market capitalization.
Bitcoin, which recently reached a new all-time high of over $111,000, has dropped 3% after Trump's post and fell to a low of $108,000 on leading cryptocurrency exchanges. At the time of writing, the price of Bitcoin is trading at nearly $108,530, witnessing a 32% decrease in 24-hour trading volume.
Following Bitcoin, leading altcoins—including ETH, XRP, SOL, DOGE, and ADA—have dropped by up to 4% over several hours. The CoinMarketCap 100 index, which tracks the top 100 cryptocurrencies by market capitalization, has decreased by 2.84%, marking a significant decline over the past month.
The rapid downward trend has shaken traders' confidence, with more than $308 million in long positions liquidated on cryptocurrency exchanges. Market data from Glassnode indicates that total liquidations, combining both long and short positions, reached $334 million in the past 4 hours.
Trump Proposes 50% Tariff on the European Union
Trump has sparked lively discussions globally with his latest plan to impose a 50% tariff on the European Union. "The European Union, established primarily to exploit the United States in TRADE, is very difficult to deal with," he emphasized.
"Strong trade barriers, VAT, unreasonable corporate penalties, non-monetary trade barriers, currency manipulation, unfair and unreasonable lawsuits against American companies, along with many other issues have led to a trade deficit with the United States of over $250,000,000 a year, an entirely unacceptable figure," the U.S. President stated in a post on TruthSocial.
"Our discussions with them will go nowhere! Therefore, I propose a direct 50% Tariff on the European Union, starting from June 1, 2025. No Tariff if the product is built or manufactured in the United States. Thank you for your interest in this matter!" Trump added.