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.

President Donald Trump has threatened a 200% tariff on all alcoholic products shipped from the European Union, dismaying drinkers, restaurateurs, bar owners and suppliers across the US.A reciprocal tariff-free trade agreement that has existed between the EU and the US since 1997 could be ripped up as a consequence of Trump’s anger at a European levy on “America’s native spirit” — otherwise known as bourbon.

Trump said he would impose the tariff if the European Union continues with its plan to impose a 50% tariff on whiskey beginning in April.