JUST IN: Donald Trump plans to increase tariffs on European Union cars and trucks to 25%, a move that could shake global markets.

In the short term, this may trigger risk-off sentiment, as trade tensions often create uncertainty across equities, forex, and even crypto.

For crypto, the impact is mixed. Volatility could rise, as investors look for alternative assets during geopolitical friction. Bitcoin and major coins sometimes benefit from such uncertainty as “hedge-like” assets.

However, prolonged trade wars could slow global growth, reducing overall liquidity—something crypto markets rely on.

Bottom line: Short-term volatility boost, but long-term impact depends on how deep the trade tensions go.