The Trump Shock: A statement that shakes the global economy

The economic world was *severely shaken last Friday.*

With a simple statement on Truth Social, US President Donald Trump announced his intention to impose tariffs of 50% on European imports from 1 June 2025.

This announcement caused an immediate shockwave: Wall Street faltered, European indices plunged, and the cryptocurrency market suffered a major backlash, with Bitcoin falling 4% and liquidations exceeding $300 million.

*"I recommend a 50% tariff on the EU starting June 1st."* It was with this terse statement that Trump launched his new trade offensive, justifying his stance by claiming that it is "very difficult to deal with the EU" and that current negotiations "are going nowhere".

Later in the day, from the Oval Office, Trump confirmed that he was not "looking for a trade deal" with the EU, specifying: "It is time to play this game the way I know how to play it." (Truth Social)

*The fallout was immediate.*

European stock markets fell, particularly in the luxury and automotive sectors. Wall Street also opened in negative territory.

Markets "including Frankfurt, the CAC 40 as well as major Wall Street indices, fell on Friday following the US President's announcements", reports Euronews.

*The cryptocurrency market was particularly hard hit.*

Bitcoin, which had reached all-time highs, plunged by 4%, falling from a peak of $110,000 to around $107,367 in just a few hours.

This decline triggered a cascade of forced liquidations.

"Over $300 million in leveraged crypto positions were liquidated in just four hours," reports Finance Feeds. One trader described the situation as a "real flush", where "long leverage was wiped out, spot selling began."

Trump also directed his attacks against Apple, threatening to impose tariffs of at least 25% if the company does not bring its iPhone production back to the United States. "If not, Apple will have to pay tariffs of at least 25% to the US", he wrote.

*The EU is keeping a low profile for now, but is preparing to retaliate.*

Laurent Saint-Martin, the French Minister for Foreign Trade, stated: "We maintain the same line: de-escalation, but we are ready to respond". (France Info)

The European Commission has already launched a consultation on a list of US products potentially targeted by retaliatory measures, including cars, aircraft, electrical equipment and agri-food products, worth up to €95 billion.

*Experts agree on the destabilising impact of this escalation.*

"Trump's remarks have heightened geopolitical uncertainty, rapidly dampening appetite for risk assets", explains an analyst. (Bloomingbit)

With 1 June rapidly approaching, all eyes are on Washington and Brussels. Trump's intransigence leaves little hope of a compromise, signalling weeks of volatility for global financial markets and potentially a turning point in transatlantic economic relations.