Merchants worried that a trade war could wreak financial havoc in a region that has a robust business exporting the world’s finest bubbly to the United States.

President Trump on Thursday announced another salvo in a fast-escalating trade war with the European Union, saying he would impose a 200% tariff on U.S. imports of wine, Champagne and other alcoholic beverages from the 27-nation bloc.

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.