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Donald Trump’s return to the global economic stage was enough to shake the markets. On Friday, a blunt statement on Truth Social ignited tensions : 50 % tariffs on European imports starting June 1st. The reaction was immediate. Wall Street wavered at the open, traders hurriedly adjusted their positions, and the crypto market absorbed the shock: bitcoin dropped 4 %, leading to liquidations of positions exceeding 300 million dollars.
In Brief
- Donald Trump threatens to impose 50 % tariffs on European imports starting June 1, reigniting transatlantic trade tensions.
- The American president denounces a trade deficit he considers unacceptable, estimated between 300 and 350 billion dollars, a figure disputed by Brussels.
- This escalation occurs amid stalled negotiations between the EU and the United States, despite a 90-day tariff truce granted earlier this year.
- His statement caused an immediate 4 % drop in Bitcoin, sliding to $107,367 and over 350 million dollars in liquidations on the crypto market.
The Return of a Trade Showdown : Trump Increases Pressure on Europe
The trade deal struck between the United States and China, followed by a 90-day truce, had triggered a wave of optimism about the global economy. However, on Friday, May 23, Donald Trump reignited trade tensions between the United States and the European Union with a clear message posted on Truth Social :
Our talks are going nowhere. Under these conditions, I recommend imposing 50% tariffs on the EU, starting June 1st.
He openly accuses the European Union of structural trade imbalances. Hence, he states that “the EU was created primarily to benefit the United States commercially”. This statement, more radical than previous ones, fits into a context of stalled negotiations despite a 90-day tariff truce granted in the spring.
Trump justifies this escalation with a set of economic grievances detailed in his publication. Here are the points of tension raised by the American president :
- The trade deficit : estimated by Trump between 300 and 350 billion dollars. Official U.S. data (USTR) assesses it at 235 billion dollars, while the European Commission speaks of 150 billion euros for goods, and 50 billion if services are included.
- Customs and fiscal barriers : Trump denounces “trade barriers”, an unfavorable European VAT, and non-tariff restrictions.
- Regulatory pressure on American companies: he cites “ridiculous sanctions”, unjustified prosecutions, and discriminatory behavior towards American firms operating in Europe.
- A progressive tariff increase : since his return, Trump has already raised tariffs to 12.5 %, after an initial increase of 10 % in early April. The 50 % threshold would represent a major break.
Discussions between American representatives and European officials, including Maros Sefcovic on the European side and Scott Bessent, Howard Lutnick, and Jamieson Greer on the American side, are deemed unsuccessful.
This stalemate fuels the idea that this tariff threat is not merely rhetoric but a direct pressure strategy to make Brussels bend.
The market reaction was swift. At Wall Street’s opening, the bitcoin price fell to $107,367, losing nearly 4% in a few hours before slightly recovering.
This sharp movement, widely interpreted as a direct response to Trump’s announcements, caused liquidations of positions totaling 350 million dollars on the derivatives market, according to CoinGlass data. The total liquidations over 24 hours even exceeded 500 million dollars, affecting the entire crypto ecosystem, from bitcoin to Ethereum.
Moreover, analysts agree on one observation: this correction is “headline-driven”, according to trader Skew. The tariff threat was seen as a destabilizing factor, triggering a wave of automatic disengagement on leveraged platforms.
The $110,000 threshold, considered by several analysts as a strategic resistance zone, is now closely watched. Trader Crypto Caesar believes “we must hold this green zone”, referring to a support band just below this psychological level.
As for Daan Crypto Trades, he notes on social network X on May 23 that “the market clearly does not like trade uncertainty”, implying that further shocks are possible if the situation drags on.
Beyond the technical reaction, this episode marks a new stage in the increasing correlation between cryptos, particularly bitcoin, and the overall macroeconomic environment. Trade wars, once seen as an exogenous issue to these assets, are now capable of triggering sharp movements comparable to those observed in the stock market.
If Trump’s threats materialize on June 1st, the impact could be prolonged or even intensified. Conversely, a last-minute turnaround or compromise could offer a quick rebound. One thing is certain: political volatility has become a structural risk for the crypto market, just like Fed announcements on rates or inflation figures.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
