๐ฅ Markets Rattle as Trumpโs Tariff Threats Hit Crypto and Stocks ๐๐ธ
U.S. President Donald Trump reignited trade tensions on Friday by proposing steep tariffs on the European Union ๐ช๐บ and threatening tech giant Apple ๐ with new taxes โ moves that sent shockwaves across financial markets.
Trump announced plans for a 50% tariff on EU imports, citing stalled trade negotiations, and floated a 25% tax on Apple if the company continues manufacturing iPhones outside the U.S.
โI have long ago informed Tim Cook of Apple that I expect their iPhones sold in the U.S. to be made here,โ Trump posted on Truth Social.
He described the EU as โvery difficult to deal withโ and proposed the U.S. implement the EU tariffs starting June 1 ๐๏ธ. No timeline was given for the Apple tax.
The crypto market reacted instantly. After reaching a new all-time high of $111,970 on Thursday ๐, Bitcoin ($BTC ) tumbled below $110,000, losing about 2%. Other major cryptocurrencies like Ethereum ($ETH ), XRP, and Dogecoin ($DOGE ) fell nearly 3%, dragging the total crypto market cap down by 3.5% ๐.
This correction comes just weeks after a powerful rally that saw Bitcoin climb from $75,000 in early April ๐ผ.
Traditional financial markets werenโt spared. The stock market dipped 1% ๐ after Trumpโs statements before paring losses to close down 0.37%.
According to Nicolai Sรธndergaard, Research Analyst at Nansen, the move is โmore of a negotiation tactic than concrete policy.โ
โThis feels like a temporary disruption,โ he told FXStreet, โbut it shows just how sensitive risk assets are to political signals in todayโs macro environment โ ๏ธ.โ
