U.S. President Donald Trump said Thursday he plans to put a 200% tariff on alcohol from France and other European nations in the latest escalation of global trade tensions.

The U.S. tariff comes after the European Union moved to reinstate an import tax on American whiskey.

“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky. 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. This will be great for the Wine and Champagne businesses in the U.S.,” Trump said on Truth Social.

On Tuesday, the European Commission announced that it was retaliating against U.S. tariffs on steel and aluminum by lifting the suspension on previous levies on U.S. goods, including whiskey, and imposing new ones.

“The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate,” Ursula von der Leyen, president of the European Commission, said Tuesday.

The news Thursday appeared to put pressure on European liquor stocks, which have already been struggling recently.

Paris-traded shares of LVMH Moet Hennessy Louis Vuitton, the largest luxury brand company in the world and headed by billionaire Bernard Arnault, the richest man in Europe, fell for a ninth day Thursday, dropping 14% since the end of February. Remy Cointreau eased for a third day, bringing its loss to almost 11% in that stretch. Pernod Ricard weakened for a third day, and is down more than 6% since Monday’s close.

The trade war appears to have also taken a bite out of U.S. alcohol stocks. Shares of Jack Daniels parent Brown Forman are down more than 7% this week.

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