The EU is considering countermeasures worth €93 billion ($107.7 billion) on U.S. imports.
The European Union stated that it intends to take strong measures against the United States in response to the new Tariffs imposed by President Trump. This led to a devastating crypto market crash, triggering large liquidations.
Trump Tariffs Set Off Another Crypto Market Crash
The market has suffered yet another setback due to the ongoing trade tensions between the U.S and the European Union. The Bitcoin price saw a sudden drop in the early trading hours of Monday. This led to liquidations of over $850 million.
This came as U.S stocks markets remain closed amid the current public holiday in the country. BTC fell straight from around $95,000 to as low as $91,000. This reversed the gains it had seen in recent weeks, where it went as high as $97,000.
Altcoins also followed the coin’s lead as the total crypto market cap crashed by 3%. Notably, the market has lost over $110 billion in value since last Thursday.
This came after Trump announced that the U.S. would impose a 10% tariff on goods from major EU countries from February 1. He also threatened a 25% increase in the policy from June 1 if they do not reach a deal on the purchase of Greenland.
Meanwhile, this was not graciously received by these countries as they now plan to make a retaliatory move. To add, the U.S government is still waiting for the Supreme Court on whether these Trump tariffs are legal in the first place, as sentiment continues to dwindle in the market.
EU Plans Strong Tariff Response to President Trump
The crypto market crash started in full swing as signals from Europe show a retaliatory response to the United States threat. According to Reuters, EU ambassadors reached an agreement late Sunday to stop Trump from implementing the tariffs on the countries.
They are planning to discuss potential measures they would take on the matter in an emergency summit in Brussels this Thursday. The leaders are considering a package of tariffs on 93 billion euros, which is $107.7 bullion on US imports. This could automatically begin on February 6 after its previuous six month suspension.
Another option the EU is considering is implementing an “Anti-Coercion Instrument (ACI)” that could limit access to banking services and restrict trade services. To add, investors had initially feared a crypto market crash when the U.S captured the Venezuelan President. The market, however, held then.
Meanwhile, the eight countries targeted by the tariffs said they have sent a number of military personnel to Greenland to protect it from U.S. interference.
“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,” they said in a statement.
