U.S. President Donald Trump on Thursday threatened to slap a 200% tariff on wine, cognac and different alcohol imports from Europe, opening a brand new entrance in a worldwide commerce warfare that has roiled monetary markets and raised recession fears.
Shares fell on the information, as buyers nervous that Trump would enact stiffer commerce limitations world wide’s largest client market. The S&P 500 completed the day greater than 10% under its report excessive reached final month, confirming the benchmark index for U.S. shares is in a correction.
Trump’s risk got here in response to a European Union plan to impose tariffs on American whiskey and different merchandise subsequent month — which itself is a response to Trump’s 25% tariffs on metal and aluminum imports that took impact on Wednesday. The European Fee had no quick touch upon the transfer.
