Trump threatens tariffs on European wine and spirits in escalating trade war

U.S. President Donald Trump on Thursday threatened to slap a 200% tariff on wine, cognac and other alcohol imports from Europe, opening a new front in a global trade war that has roiled financial markets and raised recession fears.

Stocks fell on the news, as investors worried that Trump would enact stiffer trade barriers around the world’s largest consumer market. The S&P 500 finished the day more than 10% below its record high reached last month, confirming the benchmark index for U.S. stocks is in a correction.

Trump’s threat came in response to a European Union plan to impose tariffs on American whiskey and other products next month — which itself is a reaction to Trump’s 25% tariffs on steel and aluminum imports that took effect on Wednesday. The European Commission had no immediate comment on the move.