Recent trade policy announcements by U.S. President Donald Trump have sent ripples through both traditional financial markets and the cryptocurrency space. Trump's threats to impose tariffs on goods from the European Union and specifically targeting companies like Apple and Samsung have triggered market volatility and investor uncertainty.

On Friday, U.S. stocks closed lower, concluding the week with losses as investors reacted to Trump's new tariff threats. Trump suggested that Apple must pay a 25 percent tariff on iPhones sold but not made in the United States. He extended the tariff threat to other manufacturers such as Samsung. Companies that build manufacturing plants in the United States would be exempt from tariffs. Trump also threatened to raise tariffs on European Union imports to a flat 50 percent starting June 1, as negotiations between the United States and the European Union showed little progress. Following these remarks, all three major indexes closed off their session lows. The Dow Jones Industrial Average dropped 256 points, or 0.61 percent, the S&P 500 fell 0.67 percent, and the Nasdaq Composite lost 1 percent. Among the S&P 500 sectors, technology took the biggest hit, falling 1.33 percent, while consumer discretionary and communication services also underperformed. Utilities, consumer staples, energy, and real estate managed to post modest gains. Investor concerns were also fueled by fears that recent fiscal policy measures could add trillions to the U.S. deficit, especially in the wake of Moody's recent downgrade of the U.S. credit rating.

The cryptocurrency market also reacted negatively to the tariff news. Bitcoin's price experienced a downturn after Trump recommended a 50% general tariff against the European Union, leading to over $100 billion leaving the crypto space. After hitting a new all-time high of $112,000, Bitcoin tumbled below $107,500 following the announcement. Other cryptocurrencies, including Ethereum, XRP, Solana and various altcoins, also experienced significant losses. The total crypto market has lost over $100 billion since yesterday and is down to $3.530 trillion. Liquidations in the crypto market totaled $567.65 million in the past 24 hours. Long positions accounted for $34.05 million, while short positions made up $30.09 million.

Analysts warn that the tariff announcement could be the start of broader economic disruption. European stock indices fell sharply, and US tech shares also faced selling pressure. The market now appears to be caught between downward fear and upward retracement attempts, leading to a fluid and uncertain situation. If the tariff threat escalates into a full trade dispute, risk assets, including cryptocurrencies, may face additional headwinds. Traders are closely monitoring EU responses and any signs of negotiation to gauge the next market move.