The cryptocurrency markets have experienced a significant rebound, gaining nearly $100 billion over the past 12 hours. This surge follows a notable announcement from U.S. President Donald Trump regarding trade relations with the European Union.
Late on Sunday, May 25, Trump revealed that he would extend the deadline for a proposed 50% tariff on EU goods, delaying its implementation from June 1 to July 9. The adjustment comes in light of ongoing discussions aimed at resolving trade tensions.
“I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union,” Trump posted on his social media platform, Truth Social.
“I agreed to the extension,” he added, indicating it was “my privilege to do so.”
Tariff Flipflops Cause Market Turmoil
In response to Trump’s announcement, European Commission President Ursula von der Leyen expressed Europe’s readiness to engage in swift and decisive negotiations. She emphasized the need for time until July 9 to reach a mutually beneficial agreement.
Good call with @POTUS.
The EU and US share the world’s most consequential and close trade relationship.
Europe is ready to advance talks swiftly and decisively.
To reach a good deal, we would need the time until July 9.
— Ursula von der Leyen (@vonderleyen) May 25, 2025
Trump’s inconsistent tariff policies have led to substantial market volatility, leaving both nations and investors uncertain about future trade relations. Recently, he characterized discussions with the EU as lacking progress, stating that the bloc has posed difficulties in negotiations.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump commented shortly before his recent announcement.
With the United States being the EU’s largest trading partner—accounting for 21% of its exports, including pharmaceuticals, vehicles, and machinery—the economic implications of these tariff policies are profound.
Crypto Market Reaction
In the wake of tariff tensions rising late last week, the crypto markets saw a sharp decline, dropping approximately 4% from their multi-month highs. However, following Trump’s decision to delay the tariffs, total market capitalization rebounded to $3.56 trillion, reflecting a 2.5% increase over the last 12 hours.
Bitcoin, a dominant force in the market, recorded a 1.5% uptick, trading at $109,650 after recovering from a weekend low of $106,800, according to Coingecko.
As the week progresses, further volatility may loom, especially with critical GDP and inflation data expected to be released in the United States, potentially impacting market dynamics in the coming days.
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