WASHINGTON ¨C 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 ¡ª 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.
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