Tariff Fears Spoil Yesterday's Cheers
🇺🇸💸 Just a day after Bitcoin's new $112K all-time high was established, tariff drama was quickly brought back on to the menu and has temporarily spoiled the crypto party. President Trump has announced two new major tariff threats as the U.S. heads into Memorial Day weekend:
🇪🇺 A 50% tax on all imports from the European Union
🍎A 25% tariff specifically targeting Apple if the company continues manufacturing iPhones outside the United States
Trump expressed frustration over stalled trade talks with the EU and said these tariffs would start on June 1st unless negotiations improve. He also criticized Apple’s decision to move much of its iPhone production to India and warned that the company would face import taxes unless production is brought back to the U.S.
Trump claims these aggressive tariffs are aimed at fixing what he views as an unfair trade imbalance, particularly with the EU, and to bring more manufacturing jobs back to the United States.
Less than 2 weeks after a cloud appeared to be lifted between the boiling trade war involving the U.S. and China, this new wrinkle has brought back the highest level of tariff discussions since the peak FUD across crypto markets from April 7th to 9th.
Bitcoin has quickly dipped back a bit over 3%, as low as $107.6K. The SP 500 market reaction was swift and negative as well. The unpredictable nature of the latest trade tariff policies coming from the U.S. has shifted many traders' strategies into holding and "hoping for the best". We will continue to update as this develops.
