Analyst downplays Trump’s tariff threat on EU goods, Apple devices as bitcoin briefly slips under $109,000

Bitcoin fell on Friday as markets reacted to renewed trade tensions between the United States and the European Union. President Donald Trump said negotiations with the EU were stalling and threatened to impose a 50% tariff on European imports starting June 1.

"Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025," Trump wrote in a Truth Social post.

The president also criticized tech giant Apple, vowing to impose a 25% baseline tariff on devices sold in the U.S. but manufactured abroad.

"I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump wrote in a separate post on Truth Social.

Markets react

Within an hour, the price of bitcoin dropped from over $110,000 to below $108,400. BTC had slightly recovered to $109,700 as of writing, according to The Block’s price page. The decline rippled through the broader crypto market, with ether, SOL, and XRP all posting losses. CoinGlass reported liquidations worth over $200 million as crypto prices tipped.

Led down by Apple's stock drop, U.S. equities and futures also dipped on the news, with the S&P 500 index down about 1% at publication time.

Amid record bitcoin open interest and all-time highs on Thursday, CoinPanel Senior Automation Expert Dr. Kirill Kretov said any negative macro news may halt momentum.

"Yes, Bitcoin has just broken above $111,000, but we should be cautious," Kirill told The Block on Thursday. "This might be a trap, not a breakout. If the buildup is driven mostly by unhedged long exposure, the risk of a liquidity cascade increases, especially if spot buyers dry up or a funding squeeze hits."

Others opined differently. Nicolai Sondergaard, research analyst at Nansen, noted that Trump's announcement could just be a "negotiating tactic" rather than actual policy. However, he added that the market reaction confirmed prevalent macro sensitivity for bitcoin and risk assets.

"I don't expect these tariffs to actually materialize. Rather, this move seems intended to influence ongoing discussions, possibly signaling that negotiations are not progressing as intended," Sondergaard said. "For now, this feels like a temporary disruption rather than a structural shift, but it underscores how sensitive risk assets are to policy signals, especially in the current macro environment."