WASHINGTON (TNND) — President Donald Trump continued to inch the United States toward a trade war Thursday, one with a growing list of opponents.

Trump threatened to place a 200% tariff on all alcohol from European Union nations after the European Commission, along with Canada, raised tariffs on a range of American products, including an additional 50% duty on whiskey. The retaliatory move followed Trump's 25% tariffs on steel and aluminum imports that took effect Wednesday morning.

"The U.S. doesn’t have Free Trade. We have 'Stupid Trade.' The Entire World is RIPPING US OFF!!!" Trump said in a social media post.

Trump said he would impose the sweeping alcohol duties if Europe didn't retract its retaliatory tariffs. French Foreign Trade Minister Laurent Saint-Martin said they're standing firm.

"D. Trump is escalating the trade war he chose to unleash. France remains determined to respond with the European Commission and our partners. We will not give in to threats and will always protect our sectors," Saint-Martin said in a translated social media post.

Rep. Morgan McGarvey, D-Ky., said the whiskey tariffs will have a "devastating impact" on his home state, which produces 95% of the world's bourbon. He said the new duties will impact the entire supply chain, from corn farmers to drivers who bring the finished product to store shelves.

“I think everybody in Kentucky knows somebody who works in the bourbon industry," McGarvey said.

According to Commerce Secretary Howard Lutnick, the president was "totally annoyed" that Europe responded with tariffs of their own.

"And so you’re going to hear back from someone who emotionally cares about America," Lutnick said.

The back-and-forth contributed to another day of losses on Wall Street. Thursday's trading session ended with the Dow Jones Industrial Average down 1.30%, the NASDAQ shed 1.96% and the S&P 500 lost 1.39%, sending it into correction territory for the first time since 2023.

Treasury Secretary Scott Bessent brushed off the trading turbulence.

“One or two items with one trading bloc, I’m not sure why that’s a big deal for the markets," Bessent told CNBC Thursday morning.

It's just the latest layer of uncertainty to rock the private sector. In a recent interview with CNN, Blackrock CEO Larry Fink said when he talks to executives throughout the country, he hears "that the economy is weakening as we speak." It's a natural response, he said, to the new president's tariffs and mass federal job terminations.

In its latest survey, the National Federation of Independent Business "Uncertainty Index" hit its second-highest reading ever recorded and small business optimism fell to a four-month low.

The Business Roundtable had similar findings in its first quarter CEO economic outlook index: plans for hiring, capital investment and expectations for sales all decreased.