President Trump threatened to impose 200% tariffs on alcohol from the European Union, one day after the EU said it planned 50% import taxes on U.S. whiskey and other products from April 1, in retaliat

The Dow lost more than 500 points Thursday and the Nasdaq dropped more than 300 as investors reacted to President Trump's threat to impose a 200% tariff on European Union exports of wine, champagne, and other alcoholic beverages.

President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned 50% tariff on American whiskey. Wine sellers and importers said a tariff of that size would essentially shut down the European wine business in the U.S.