President Trump has threatened a 200% tariff on European wine, Champagne, and spirits in response to the European Union's planned tariff on American whiskey, potentially crippling the U.S. market for European alcohol.

The president said he would impose the levies if the European Union did not walk back plans to place retaliatory tariffs on whiskey and other U.S. products.

President Donald Trump on Thursday threatened to impose a massive tariff on European alcohol in response to the European Union’s retaliation against his steel and aluminum tariffs – a tit-for-tat escalation of a trade war that could easily get out of hand.