The crypto market took a hit Friday after former U.S. President Donald Trump threatened steep new tariffs.

Trump proposed a 50% tax on the EU, citing stalled trade talks. He also warned Apple of a 25% tax on iPhones not made in the U.S.

"I have long ago informed Tim Cook of Apple that I expect their iPhones... to be built in the U.S.," Trump posted on Truth Social.

He called the European Union "very difficult" and said talks had led nowhere. Trump suggested the EU tariffs start on June 1, but gave no timeline for Apple.

📉 Bitcoin Drops Below $110,000

Bitcoin ($BTC ) reacted quickly. After hitting an all-time high of $111,970 on Thursday, it fell below $110,000, losing nearly 2% in value.

Other cryptos followed:

  • Ethereum ($ETH ) dropped 3%

  • XRP and Dogecoin fell around 3%

  • Overall crypto market cap slipped 3.5%

This pullback came after weeks of strong gains. $BTC had surged from $75,000 in early April to over $111K this week.

🗣️ Analyst Reaction

Nicolai Søndergaard, a research analyst at Nansen, believes the 50% EU tariff may be more of a negotiation tactic than an actual policy.

“This feels like a temporary disruption… but shows how sensitive risk assets are to political signals,” he told FXStreet.

📉 Stocks Dip Too

The U.S. stock market also felt the tremor. It fell 1% after Trump’s statement but later trimmed losses, recovering to -0.37% by publishing time.

⏱️ What’s Next?

Markets are on edge. Tariff threats create uncertainty, especially for tech and crypto investors. If Trump's plans become policy, expect more volatility ahead.

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