Trump’s 50% EU Tariff Threat Sends Crypto Markets into a Tailspin

Trade wars aren’t just for stocks anymore—crypto just got dragged into the fray. A leaked proposal for 50% tariffs on EU goods triggered a flash sell-off across major digital assets. Turns out even decentralized markets fear old-school protectionism.

Bitcoin bled 8% in 3 hours. Ethereum got caught in the crossfire. And stablecoins? They briefly lost their peg—because nothing says ’stable’ like panic-induced arbitrage.

Wall Street analysts are calling it an overreaction (while quietly rebalancing into gold). Meanwhile, crypto traders are doing what they do best: treating geopolitics as just another volatility play. The EU hasn’t even retaliated yet—wait till they tax US-based mining pools.

Funny how tariffs from 18th-century economic theory can still rattle 21st-century ’uncorrelated’ assets. Maybe Satoshi should’ve coded a tariff-resistant consensus mechanism.

Trump Proposing 50% Tariff on European Union

Trump has sparked heated discussions on the global scale with his latest plans to impose a 50% tariff on the European Union. “The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” he emphasized. 

“Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,” the U.S. president said in his TruthSocial post. 

“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!,” TRUMP added. 

Also read: Bitcoin Almost Touched $112K, But Here’s What Went Wrong