Good Vibes Shattered as Trump Revives Trade War, Sending Bitcoin Tumbling Below $109K

The president Friday morning threatened an imminent 50% tariff on all EU imports as well as a 25% levy on imported Apple iPhones.

What was setting up to be a somewhat sleepy session ahead of the holiday weekend is no more as President Trump woke up and chose to reignite what had been cooling trade tensions.

“The European Union … has been very difficult to deal with,” said the president in a Truth Social posting. “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the EU, starting on June 1.”

The leader of the free world also took aim at Apple (AAPL) and its CEO Tim Cook. “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the U.S. will be manufactured and built in the U.S., not India or anyplace else. If that’s not the case, a tariff of at least 25% must be paid by Apple.”

U.S. stock index futures quickly moved from modest gains to nearly 2% declines, with Apple falling 3.6%. Above $111,000 prior to the news, the price of bitcoin 

BTC$108,755.81 quickly pulled back to $108,600.

BY: Stephen Alpher

DISCLOSURE & POLICES

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.