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Crypto markets tumbled on Friday, as U.S. President Donald Trump surprised by announcing a 50% tariff on all goods from the European Union that would go into effect on June 1.

At the time of writing, Bitcoin, which had been trading over $111,000 yesterday, had dropped 2.6% in the last 24 hours to $109,317. Ethereum dropped 3.5% to $2,560.01 as the risk sentiment globally continues to decline.

Altcoins also faced selling pressure. XRP dropped 2.6%, Cardano declined by 2.7%, and TRON was down over 4.7%, indicating a general elevated sense of anxiety among market participants.

While other assets, like Solana and Dogecoin, finished slightly positive over the last seven days, all indications point towards uncertainty in the short-term trend of prices in the previous 24 hours.

Trump's announcement was made via Truth Social. He called the EU "very difficult to deal with" and said trade talks with the European Union are "going nowhere. The 50% tariff is the latest in a series of aggressive trade moves by the Trump administration. It is reminiscent of the U.S.–China tariff dispute that previously resulted in volatility across both the equity and crypto markets.

The EU tariff could lead to retaliatory measures, disruptions in supply chains, and an impact on global growth prospects, all of which would lead to short-term selling of speculative assets like crypto. The tariff shock caused a panic sell-off in crypto derivatives. Over an hour, over $300 million in long positions were liquidated across different exchanges.

Markets reel on shocking EU tariff news first appeared on TheStreet on May 23, 2025