US President Donald Trump’s recent decision to delay a proposed 50% tariff on EU goods, from June 1 to July 9, 2025, is the latest example of a pattern that has defined his approach to economic policy: aggressive threats followed by strategic retreats. This tactic, framed as “America First” nationalism, has repeatedly triggered market turbulence, creating opportunities for those positioned to capitalize on volatility. Let’s break down the mechanics, evidence, and implications.
The Tariff Playbook: Threaten, Retreat, Repeat
On May 23, 2025, Trump announced a sweeping 50% tariff on EU imports and specifically targeted Apple, citing unfair trade practices. Markets reacted immediately:
- S&P 500 fell 0.7% that day, closing at 5,802.82.
- Dow Jones Industrial Average dropped 0.6% to 41,603.07.
- Apple’s stock plunged 3%, from $201.36 to $195.27.
By May 25, after a call with European Commission President Ursula von der Leyen, Trump postponed the tariffs to July 9, citing ongoing negotiations. Futures markets rallied:
- S&P 500 futures rose 1% in early trading.
- Euro Stoxx 50 futures climbed 1% as European markets opened.
This “threat-and-delay” cycle mirrors earlier moves. In April 2025, Trump paused tariffs for 90 days after a similar market dip, sparking a relief rally. Analysts call this “weaponized uncertainty”, a strategy that keeps markets and trading partners off-balance while amplifying volatility.
Nationalism as a Political Shield
Trump justifies tariffs as protecting American jobs and industries. This “America First” rhetoric resonates emotionally, framing critics as unpatriotic. However, the economic fallout tells a different story:
- Retaliatory tariffs from the EU and China have hurt US exporters, particularly farmers.
- Consumer costs have risen in sectors like steel and automotive manufacturing.
- Market instability disproportionately impacts small investors and businesses lacking resources to hedge against sudden policy shifts.
While Trump claims these measures revive domestic manufacturing, data from the Tax Foundation and Schiller International University suggest tariffs have had mixed results at best, with GDP growth slowing in 2025 compared to pre-tariff periods.
Who Benefits?
The volatility created by tariff threats tends to favor two groups:
- Institutional Traders: Large funds with algorithmic trading systems thrive on short-term swings.
- Protected Industries: Domestic sectors like steel see temporary boosts from reduced foreign competition.
However, everyday investors and businesses face heightened risk. For example, Apple’s stock drop on May 23rd erased billions in market value, while recovery hinges on opaque negotiation timelines. There’s no public evidence of insider trading, but the pattern rewards those who anticipate Trump’s next move, a dynamic critics call “soft insider advantage.”
The Bitcoin Speculation
Trump’s recent embrace of cryptocurrency adds intrigue. After years of skepticism, he now aims to make the US a “Bitcoin superpower” and has floated a “strategic Bitcoin reserve.” While this shift aligns with his pro-innovation stance, it raises questions:
- In March 2025, Trump announced plans to accumulate Bitcoin for national reserves, though details remain vague.
- His family’s involvement in crypto projects (including meme coins) and exclusive meetings with crypto investors have sparked ethical concerns.
Could tariff-induced market chaos be a ploy to depress crypto prices for government accumulation? No proof exists, but Trump’s history of leveraging uncertainty makes this theory plausible to some analysts.
Market Impact: A Whipsaw Effect
Spotting the whipsaw on the BTC/USDT 30-minute chart (19 – 26 May 2025)
| Phase | Time (UTC) | Price move | Context |
| 1. Euphoria & new ATH | 22 May, ~09:00 | BTC peaks near 110 900 | Momentum after fresh all-time-highs and upbeat ETF inflows |
| 2. Shock drop | 22 May 20:30 → 23 May 04:00 | Falls to 104 800 (-4.7 %) in < 8 h | Trump threatens 50 % EU tariff; broad risk-off sell-off |
| 3. Whipsaw reversal | 25 May pre-market → 26 May 06:30 | Rallies back to $110 000 | Tariff delay headlines spark relief, shorts scramble |
Why it’s a classic whipsaw
- False breakout → sharp mean-reversion. Traders chased the breakout above 110k USDT, only to be stopped out when price knifed down through recent support.
- Aggressive volume spikes on both legs show algorithms and liquidations amplifying each swing.
- RSI & Stoch oscillators dumped straight from overbought <30, then snapped back above 50—textbook emotional pendulum.
- Macro catalyst flips sentiment: the tariff threat (risk-off) and the 48-hour later delay (risk-on) acted like on/off switches for leverage positioning.
The Bottom Line
Trump’s tariff strategy is less about trade policy and more about controlling market sentiment through calculated unpredictability. By wrapping economic brinkmanship in nationalist rhetoric, he avoids scrutiny while destabilizing competitors and allies alike.
For investors and crypto users alike, the takeaway isn’t to try and “play the swings” but to understand the broader game. These are times when headlines move faster than fundamentals, and policies can shift with a single tweet.
At Millionero Exchange, we believe the best response is education, not speculation. Our Millionero Blog breaks down these complex events in clear, simple language, so users can make informed decisions on their own terms. Whether you’re trading spot, exploring perpetuals, or just learning the ropes, we offer tools built for clarity and control.
🚨 This is not financial advice. Nothing in this article constitutes investment or trading recommendations. We strongly urge users to do their own research, assess their risk tolerance, and consult professionals where appropriate. Millionero does not endorse political positions or specific investment strategies.
In short, volatility is unavoidable, but confusion is not. Stay curious, stay critical, and stay protected.