We have a new development regarding America’s tariff policy, and Europe appears to be in the crosshairs. U.S. President Donald Trump has escalated trade tensions with the European Union today, announcing a proposed 50% tariff on EU imports starting June 1st.
Trump made the announcement on Truth Social, stating that the European Union was formed “for the primary purpose of taking advantage of the United States on TRADE” and accusing the bloc of employing “powerful Trade Barriers, VAT taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American companies, and more.” He also claimed the U.S. runs a $250 billion trade deficit with the EU and that negotiations were “going nowhere.”
“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” Trump wrote. “There is no Tariff if the product is built or manufactured in the United States.”
Since taking office, Trump has made it a habit of leading with an aggressive stance during negotiations, only later toning down his demands as talks progress. Whether the President will go through with his plans to tax 50% of European imports remains to be seen, however, its market impact can already be felt.
Markets took a hit following Trump’s tariff announcement, with the Dow Jones Industrial Average opening 480 points lower as investors weighed the risks of escalating trade tensions. European stocks also tumbled, with Paris sliding 2.8%, Frankfurt dropping 2.5%, and the STOXX Europe 600 index suffering its worst daily decline in over a month.
After reaching a new record-high price yesterday, Bitcoin also took a small hit from the news. Immediately after Trump’s announcement, $BTC fell by 3.6% in a single hour. The asset would later recover some of the losses, currently trading at $108,338—down 2.51% over the last 24 hours.
This movement led Bitcoin to break its acending pattern for the first time since May 19, when the asset first began its all-time high climb.
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