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.

The European Commission is calling on President Donald Trump to revoke tariffs now that he's threatened a 200% tariff on European wine, Champagne and spirits if Europe goes forward with a planned tariff on American whiskey.

WASHINGTON, March 13 (Reuters) - U.S. President Donald Trump on Thursday threatened to slap a 200% tariff on all wines and other alcoholic products coming out of Europe if the European Union does not scrap its planned tax on American whiskey.