Bitcoin fell below $108,000 following President Donald Trump's announcement of a proposed 50% tariff on European Union imports, set to begin June 1, 2025. The move was attributed to a $250 billion annual trade deficit and stalled negotiations between the US and the EU. The tariff proposal triggered a sharp market reaction, with Bitcoin dropping nearly 3% after reaching a record high earlier in the week. The broader cryptocurrency market declined by approximately 4.3%, losing over $100 billion in value. US stock indices also experienced declines, with the S&P 500 down 0.92%, the Dow dropping 480 points (0.69%), and the Nasdaq falling 1.2%. Despite the pullback, Bitcoin remained up 4.35% for the week. Traders reacted to the renewed macroeconomic uncertainty caused by the tariff announcement, impacting both crypto and traditional equity markets.