Bitcoin (BTC) markets dropped 4.3%, losing over $100 billion, after US President Donald Trump proposed stiff 50% tariffs on the European Union.

After hitting a record high on Thursday, Bitcoin dropped nearly 3% as investors are back on high alert over any whiff of a new trade war.

Cryptocurrency markets dropped 4.3% on Friday, losing over $100 billion from their collective value as the threat of a new trade war brought fresh volatility to global markets.

After hitting a record high on Thursday, Bitcoin dropped nearly 3% to trade below the $40,000 level once again. The world’s largest cryptocurrency is now down about 10% from its all-time high of $42,000, reached earlier this month.

Ethereum, the second-largest cryptocurrency on the market, shed 4% in the last 24 hours to trade at $2,553.

Other popular cryptocurrencies, such as XRP, Dogecoin, Cardano, and TRX, have all plummeled by 4%.

The President criticised the EU over its trade barriers and corporate penalties, among other features of the European economy, and recommended a 50% tariff on the entire bloc beginning on June 1.

The two economies have been engaged in weeks-long negotiations over tariff compromises.

On April 2, Trump placed sweeping import taxes on more than 50 countries, including Europe.

He has since arrived at a handful of different compromises, including with the UK and a truce with China.

According to his Truth Social missive, conversations with European leaders aren’t moving along quite as smoothly.

“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,” he wrote.

Trump’s surprise announcement levelled major European stock indices, with the German DAX and French CAC dropping 2% on Friday.