#MarketPullback Markets Correct Sharply Amid EU Tariff Fears: Bitcoin Drops Over 2%, XRP Down More Than 3%
What began as a relatively calm weekend across the financial landscape took a sudden and dramatic turn early Friday after U.S. President Donald Trump announced an aggressive new tariff policy targeting the European Union. The abrupt policy shift triggered widespread panic in global markets—particularly in the crypto sector—resulting in a sharp correction that wiped billions in value across major digital assets.
Tariff Threat Sends Shockwaves Through Markets
In a statement posted to Truth Social around 7:00 AM Eastern Time on May 23, President Trump declared that talks with the EU had stalled and accused the bloc of “taking advantage” of the United States. The president announced plans to impose a sweeping 50% tariff on European imports starting June 1, more than double the previous 20% levy briefly implemented in April before being paused for negotiations.
> “The European Union… has been very difficult to deal with,” Trump stated. “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the EU, starting on June 1.”
The announcement instantly reverberated through the crypto markets, which were already on edge following a recent all-time high in Bitcoin.
Crypto Markets Tumble: BTC, XRP Lead Losses
Bitcoin (BTC), which recently hit a record price of $113,000, dropped sharply in reaction to the news, falling over 2.5% and slipping below the $109,000 level. At the time of publication, BTC is trading at $108,526, with further volatility expected as global markets digest the tariff shock.
XRP fared even worse, shedding over 3.5% in a matter of hours. The coin had been consolidating beneath the $2.60 resistance level and showed signs of a potential breakout before the market turned. That momentum has now dissipated as price action reversed decisively downward, frustrating bullish expectations.
