U.S. President Donald Trump has escalated trade tensions by announcing a 50% tariff on European Union imports starting June 1, 2025, and a 25% tariff on Apple iPhones not manufactured in the United States. Trump criticized the EU's trade practices and warned Apple CEO Tim Cook to relocate iPhone production to the U.S., threatening tariffs otherwise.
This sudden escalation caused a sharp market reaction: Apple shares fell 3.6%, U.S. stock index futures slid nearly 2%, and Bitcoin plunged over 4% from its recent all-time high near $111,900 to around $107,000. Other markets also reacted, with the S&P 500 and oil futures declining and gold prices rising 1.5%.
Bitcoin's decline erased recent gains achieved during its price discovery phase, reflecting investor concerns over macroeconomic instability triggered by renewed trade friction. The markets are adjusting to the risk of increased tariffs and the potential economic repercussions stemming from these policy moves.
