European stock markets ended Thursday with losses as US President Donald Trump threatened to impose a 200% tariff on all wines, champagnes, and alcoholic products from the EU unless the union withdraws a 50% tariff on American whisky.
He accused the EU of being "one of the most hostile and abusive taxing and tariffing authorities in the World," claiming it was formed to "take advantage" of the US.
"If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES," Trump wrote in a social media post.
Following these developments, wine and spirits firms Pernod Ricard, Remy Cointreau and Davide Campari all fell around 4% on Thursday.
Drinks giant Diageo also declined 0.2%, while luxury goods company LVMH lost 1%.
The European Commission announced Thursday that the EU is ready for possible additional tariffs form the US.
"We are ready for whatever may happen. We have been ready for over a year," European Commission's Spokesperson Olof Gill said on Thursday in a news conference in Brussels.
"We urge the US to immediately lift the decreed tariffs and start negotiations to avoid new tariffs in the future," he added.
The pan-European Stoxx 600 declined 0.19% or 1.02 points to 540.22.
Germany's DAX 40 index fell 0.48%, or 109,27 points, to close at 22.567,14.
France's CAC 40 also lost 0.64%, or 50.75 points, to 7,938.21, and Italy's FTSE MIB 30 index dove 0.8% to 37,999.73 in a 307.38-point fall.
On the other hand, Britain's FTSE 100 was mostly flat, slightly rising 1.6 points to 8,542.56.
