Market Jitters as Trump’s 50% EU Tariff Threat Raises Bitcoin Volatility and Fed Uncertainty
The post Market Jitters as Trump’s 50% EU Tariff Threat Raises Bitcoin Volatility and Fed Uncertainty appeared on BitcoinEthereumNews.com.
Key Takeaways: Trump’s plan to put a 50% tariff on EU goods starting June 1, 2025, makes commerce more tense and the market less stable. Austan Goolsbee, the president of the Chicago Fed, thinks that increases to interest rates should be undertaken slowly because the implications of trade policy are still not clear. Bitcoin’s price has become increasingly unstable, which shows that investors are anxious about trade conflicts and the economy. President Donald Trump indicated in a recent post on X (formerly Twitter) that he would slap a 50% tax on goods arriving from the European Union starting on June 1, 2025. He said this was to tackle “unfair trade practices.” This bold attitude is ramping up trade tensions and creating some market uncertainty, which makes it trickier for the Federal Reserve to figure out what to do with interest rates soon. These situations are making the crypto markets, especially Bitcoin, a bit wobbly. Donald Trump Truth Social 05.23.25 07:43 AM EST pic.twitter.com/cutSnbYUMu — Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) May 23, 2025 Read More: White House Changes April 2 Tariff Plan; Bitcoin Reacts to Economic Change Trump’s 50% EU Tariff Threat: Trade War Back on the Table Trump’s announcement attacks the EU for erecting trade obstacles and sustaining a huge annual trade deficit with the U.S., estimated at over $250 billion. The proposed tax exempts products manufactured in the U.S., targeting only foreign-made goods to defend domestic industry. This move makes people worry again about a long-term trade war like the ones that happened previously when tariffs went up and terrified global markets. The tariff plan also goes after huge tech companies that do business in numerous countries, like Apple, which makes a lot of its products outside the US, mainly in China and India. This…
Filed under: News - @ May 25, 2025 3:25 pm