Bitcoin, altcoins decline as President Trump issues fresh tariff threats on EU and Apple

• President Donald Trump proposes a 50% tariff on the European Union, citing little progress in trade discussions.
• Trump also threatened Apple with a 25% tariff if the company refuses to manufacture its phones in the US.
• Bitcoin drops below $110,000 as the crypto market retreats following Trump's fresh tariff threats.

Bitcoin (BTC) and the broader crypto market halted their positive run on Friday, with the top crypto dropping below $110,000 following new tariff threats from United States (US) President Donald Trump on the European Union (EU) and Apple.

Bitcoin declines as Trump proposes new tariffs on EU and Apple

President Donald Trump began a fresh round of tariff threats against the EU and technology company Apple on Friday. The President proposed slapping a 50% tariff on the EU while threatening Apple with a 25% levy on phones manufactured outside the US.

"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," Trump said in a Truth Social post on Friday.

Likewise, President Trump blasted the EU — one of the United States' largest trade partners — for being "very difficult to deal with."

He said their trade discussions with the EU yielded little results and proposed that the US implement a 50% tariff on the Union.

While Trump added that his new levy proposition on EU goods should begin as soon as June 1, he did not directly state when that of Apple may commence.

The new development comes as the crypto market staged a recovery in the past weeks from post-Liberation Day tariff losses. Bitcoin surged nearly 50% from a low below $75,000 in early April to an all-time high of $111,970 on Thursday, according to Binance data.

However, Bitcoin tapered those gains on Friday following Trump's fresh tariff threats, dropping below $110,000 and down nearly 2% on the day. 

Altcoins also suffered losses, with Ethereum, XRP and Dogecoin seeing declines of nearly 3%, sending the entire crypto market capitalization down by 3.5%.

While signs of bearish sentiments are beginning to rise in the market, experts are skeptical about the seriousness of the tariffs, suggesting that Trump is using the threats to boost negotiations.

"Trump's announcement of a 50% tariff on the European Union, set to take effect by June 1, appears more like a negotiating tactic than a policy likely to be implemented," Nicolai Søndergaard, Research Analyst at Nansen, told FXStreet. 

Søndergaard stated that the slight pullback in the crypto market may only be temporary, reflecting the market's sensitivity to economic factors.

"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," Søndergaard added.

The stock market also saw losses following Trump’s statement, opening the day at a 1% loss before cutting losses slightly to 0.37% at publication time.