BTC, ETH, and XRP prices fell sharply after Trump's remarks on EU trade talks.

Bitcoin dropped below $108,500, Ethereum fell to $2510, and XRP hit $2.31. Trump announced a potential 50% tariff on the EU starting June 1, escalating trade tensions.

Bitcoin and other major cryptocurrencies fell sharply on Monday after former U.S. President Donald Trump's remarks on European Union trade talks brought fresh volatility to the market.

Bitcoin dropped below the $108,500 threshold, while Ethereum fell to $2,510 and XRP hit $2.31. Trump's comments in a post on Truth Social brought a pessimistic note to the market, which had seen some recovery in recent days.

"The European Union was purposely established to economically exploit Americans and take advantage of the United States in Trade," Trump wrote.

"I tried very hard to make a deal, but they are a tough one to deal with. They have trade barriers, unmatched corporate penalties, VAT taxes, and several other issues, which have led to a massive trade deficit for the U.S. of over $250 billion annually."

The former president added that he is strongly recommending to increase taxes by 50 percent, which will begin on June 1. He also noted that if the EU wants to build and manufacture in the U.S., there will be no tariffs.

"If they want to sell their products in the United States, let them factor in the tariffs into their prices and let the American consumer decide. Products from France, Germany, Italy, Spain, Belgium, Netherlands, Sweden, and the other members of the European Union will be taxed at 50 percent!" Trump stated in the post.

This sudden hardline stance against Europe is particularly disruptive, considering recent efforts to ease trade relations with China had provided some stability to global markets. The unexpected shift has now pushed bearish sentiment in the market.

The postscript of Trump's message read, "Good luck to Biden—he'll get clobbered if he cancels the tariffs. I hope he has the strength to keep them and negotiate a trade deal that is fair to the American people!"

This comment was in response to a report by the Financial Times that the Biden administration is planning to cancel the 25 percent tariffs that Trump imposed on European Union goods in 2018 as part of a trade dispute.

The tariffs, which cover a wide range of products such as steel, aluminum, and whiskey, have been a source of contention between the U.S. and the E.U., with both sides imposing tariffs on each other's goods in recent years.

The Biden administration is reportedly planning to cancel the tariffs as part of an effort to improve relations with the E.U. and cooperate on common challenges such as climate change and the war in Ukraine.

However, the administration has not yet made a final decision on the tariffs, and any cancellation would be subject to approval by the U.S. trade representative, Katherine Tai.

Trump's comments come as trade tensions between the U.S. and China are also heating up, with the Biden administration imposing restrictions on investment in Chinese technology companies.

The increased trade uncertainty could have significant implications for financial markets, as investors weigh the potential for economic disruption against the opportunities for cooperation and integration.

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