The U.S. president Donald Trump’s 50% tariff proposal on the European Union has sent shockwaves through the world trade markets, with the crypto industry seeing a huge downtrend and losing nearly $100 billion from its market cap.
Bitcoin, which recently made a new all-time high above $111K, has dropped 3% following Trump’s post and fell as low as $108,000 on leading crypto exchanges. At the time of writing, Bitcoin price is trading near $108,530, seeing a 32% drop in its 24 hour trading volume.
Following Bitcoin, leading altcoins—including ETH, XRP, SOL, DOGE and ADA—have declined up to 4% in hours. The CoinMarketCap 100 Index, which tracks the top 100 cryptocurrency by market cap, has dropped 2.84%, marking a notable drop in the past month.
The quick downtrend has shaken traders’ confidence, with it liquidating over $308 million of long positions on crypto exchanges. Market data from Glassnode shows that the total liquidation, combining long and short positions, has hit $334 million in the past 4 hours.
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
