Here’s how it could contribute to a Bitcoin price drop:

1. Market Uncertainty: Strong geopolitical or economic tensions, such as a massive tariff on the EU, often trigger risk-off sentiment—investors pull out of volatile assets like crypto.

2. Strengthening USD: Such protectionist policies could momentarily boost the U.S. dollar, which often leads to a drop in Bitcoin’s value (BTC is typically inversely correlated to the dollar).

3. Institutional Caution: Big institutions involved in crypto might adopt a more cautious stance amid global economic instability, reducing buying pressure on Bitcoin.

4. Fear of Recession: A potential trade war or disrupted global trade could raise recession fears, which again spooks speculative markets like crypto.