Trump Proposes 50% EU Tariff, Shaking Crypto Markets

On May 23, 2025, President Donald Trump proposed a 50% tariff on the European Union, greatly impacting cryptocurrency and global financial markets.

Tariff Announcement and Market Impact

President Donald Trump announced a 50% tariff on the European Union effective June 1, 2025. The announcement, made via Truth Social, led to significant market movements, creating uncertainty across global markets including cryptocurrency. Trump cited stalled discussions as a primary cause.

“I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” while claiming “Our discussions with them are going nowhere!” — Donald Trump, President of the United States

The proposed tariffs are set to target multiple sectors including technology. Trump also demanded Apple manufacture iPhones within the U.S., threatening a 25% tariff otherwise. This move aligns with the administration’s protectionist trade policies, generating widespread debate.

Cryptocurrency Reactions

Immediately following Trump’s announcement, the total cryptocurrency market capitalization suffered a 2.8% decline, dropping to $3.57 trillion. Bitcoin, having recently reached an all-time high, fell to $109,621 as investors reacted to the increased economic uncertainty.

Expert comments suggest that Trump’s tariff threats cast a shadow over technology and international trade, impacting investor confidence. Michael Saylor, CEO of MicroStrategy, remarked that Bitcoin remains free of national trade disputes, yet markets showed anxiety.

“No Tariffs on Bitcoin.” — Michael Saylor, CEO of MicroStrategy

Institutional and Market Analyst Insights

Institutional investors displayed a pullback in response to the trade measures, with U.S. stock futures and European markets posting notable losses. This situation further complicates the existing macroeconomic landscape for crypto assets.

Market analysts have suggested potential long-term market volatility if trade tensions persist, mirroring similar economic situations in history. Cryptocurrencies remain vulnerable to policy shifts, highlighting their sensitivities compared to traditional asset classes, and raising questions on safe-haven viability.