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.

US President Donald Trump has threatened a 200% tariff on any wine or alcoholic drinks coming in to the US from the EU, if the bloc does not remove its tariff on US whiskey. It comes after the EU said it would impose a levy on US-produced whiskey as part of its counter-tariffs in response to US tariffs on all steel and aluminium imports.