Crypto markets have gained almost $100 billion over the past 12 hours, as trade tensions have eased following the latest move from US President Donald Trump.
Late on Sunday, May 25, Trump announced that he was extending the deadline for a 50% tariff on the European Union until July 9. He previously said the tariffs would come into effect on June 1.
“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,” he posted on his social media platform, Truth Social.
“I agreed to the extension,” he said before adding, “It was my privilege to do so.”
Tariff Flipflops Cause Market Turmoil
On May 26, the European Commission President said Europe is ready to advance talks swiftly and decisively, adding, “To reach a good deal, we would need the time until July 9.”
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
Whether intentionally or not, Trump has caused major market volatility and turmoil recently with his constant changing of tariff policies and dates. This has left nations and investors in limbo as to what is really going on and when or if deals can be made. The only deal made so far is with the United Kingdom.
“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 said just days before, on May 23.
“Our discussions with them are going nowhere,” he said while proposing 50% tariffs on EU goods.
The United States is the EU’s largest trading partner. It purchases 21% of its exports, the leading one being pharmaceuticals, with other exports including vehicles, aircraft, engines and motors, machinery, petroleum oils, and alcoholic beverages, according to EU data.
Crypto Market Reaction
Crypto markets fell late last week, dropping 4% from their multi-month high as tariff tensions rose again. Total capitalization is currently $3.56 trillion, having gained 2.5% over the past 12 hours since Trump’s latest tariff u-turn.
However, there could be more volatility in store this week with GDP and inflation data due in the United States.
Bitcoin, which has dominated sentiment recently, was up 1.5% on the day, trading at $109,650 at the time of writing, recovering from a weekend low of $106,800, according to Coingecko.
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