President Trump's threat to hit the European Union with a 50% tariff and Apple with a 25% levy on iPhones sold in America sparked renewed trade war fears and rattled crypto prices on Monday.

As the threat of new tariffs against the EU and Apple appeared to weigh on markets, Bitcoin quickly reversed some of yesterday's gains. Over the past 24 hours, Bitcoin nosedived 2.2% to hit $108,319 lows before rebounding slightly to $108,438 by 12:11 ET.

“Our discussions with them are going nowhere!” Trump wrote in a post on Truth Social. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1.”

The Republican president also threatened Apple to begin paying a 25% tariff on iPhones sold in America unless they are made domestically.

“Apple will have to begin paying a 25% Tariff on IPhones made in China and sold in the U.S., starting June 1. Perhaps they can use the money to build a plant in the U.S. They will benefit greatly and the U.S. will become even richer!” Trump wrote in a separate post.

The ultimatum to Apple CEO Tim Cook appeared aimed at the tech giant’s extensive overseas manufacturing footprint.

Bitcoin’s pullback came less than 24 hours after it smashed a new all-time high of $111,980, exceeding the previous record of nearly $109K set in January.

The Bitcoin price had been on a tear following its increasing correlation with gold, a traditional safe-haven asset, and growing concerns about Japan’s and the US’s fiscal health.

Moreover, increased corporate and institutional allocation, including frequent BTC buys by publicly traded companies like Strategy (NASDAQ:STRGY) and MARA Holdings (NYSE:MARA), alongside positive inflows into US-listed spot Bitcoin ETFs, further strengthens Bitcoin’s market position.

However, Bitcoin's recent correction reflects cautious sentiment among traders. The crypto market's knee-jerk reaction implies that cryptocurrencies remain sensitive to macroeconomic and political developments.

“$BTC There’s the break from the compression with a push from Trump. Markets worldwide obviously not liking the news. Will have to see where this settles today and how BTC ends up performing relative to equities now the trade uncertainty is back,” widely-followed crypto trader Daan Crypto Trades opined in a post on X.

Ether (ETH) and other major altcoins were sliding, too. ETH has lost 2.9% of its value since yesterday and is currently trading for just above $2,562. XRP has fallen 2.5% over the last 24 hours and is currently trading for $2.37.

Meanwhile, the leading meme coin Dogecoin (DOGE) was down 2.1% during the same period, changing hands at $0.2360 as of press time.