The European Union announced Wednesday counter tariffs of 26 billion euros ($28.33 billion) on U.S. goods, "matching the economic scope" of President Trump's levies. The big picture: Trump's 25% tariffs on all steel and aluminium imports took effect earlier on Wednesday.

President Donald Trump threatened to slap a 200 percent tariff on European wine, champagne, and other alcohol imports on Thursday—the latest shot fired in his erratic global trade war.Trump announced his threat targeting booze from France and other European Union countries after the bloc unveiled plans to apply duties to a list of American goods in retaliation to the 25 percent global tariffs Trump imposed on steel and aluminium.

As tariffs "ramp up", those in Europe will "suffer most" because the EU's most important industries – cars, electrical equipment, appliances – are "exactly those where China has built the biggest advantages" and is "in position to grab the biggest piece" of any available "trade surplus pie".

U.S. President Donald Trump's sweeping tariffs on steel and aluminum imports went into effect Wednesday, attracting retaliatory measures from Europe.

Stew Leonard's wine and spirits president Blake Leonard said consumers are stocking up as President Trump threatens to impose a 200% tariff on European alcohol.